DOS and USAID Joint Review 2009 Performance and Financial

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Diplomacy andDevelopment in Action

Performance and financial information

Fiscal Year 2009

Joint Summary of

United States

Department of State



TABLE OF CONTENTS

Intrductin 1

Mission and Values 1

Message rom the Secretary o State 2

Message rom the USAID Administrator 3

Our Organizations 4

Joint Strategic Goal Framework 6

Management Highlights 7

Management Accomplishments 7

Management Challenges 10

Diplmacy and Develpment Reginal Highlights 14

Perfrmance Highlights 23

Perormance Management 23

Program Evaluation 24

Strategic Gals and Results 26

Achieving Peace and Security 26

Governing Justly and Democratically 30

Investing in People 33

Promoting Economic Growth and Prosperity 39

Providing Humanitarian Assistance 43

Promoting International Understanding 45

Strengthening Consular and Management Capabilities 47

Perormance Indicators At-A-Glance 50

Budget Highlights 52Resources by Strategic Goal 53

Financial Highlights 54

Balance Sheet Summary 55

Net Cost Summary 55

Budgetary Resources Summary 56

ABOUT THIS REPORT

Tis report provides a summary o Department o State and United States Agency or International Development (USAID) perormance

and nancial inormation or Fiscal Year (FY) 2009. Tis Joint Summary o Perormance and Financial Inormation, ormerly known

as the Citizens’ Report, is the third report in a series o three annual nancial and perormance reports that also includes the Agency

Financial Report and the Annual Perormance Report. Tis Summary Report provides inormation on both agencies’ perormance in

promoting greater accountability and accessibility to Congress, the American public, and other key constituencies. Te Department

and USAID continue to work towards planning, budgeting, and managing diplomacy and development activities to achieve greater

integration and ocus to urther oreign policy goals and improve people’s lives around the world.



O u r M i s s i O n s t at e M e n t

Advance reedom or the beneft o the American people and

the international community by helping to build and sustain a more

democratic, secure and prosperous world composed o well-governed

states that respond to the needs o their people, reduce widespread

poverty, and act responsibly within the international system.

O u r V a l u e s

L O Y A L T Y

Commitment to the United States and the American people.

C H A R A C T E R

Maintenance o high ethical standards and integrity.

S E R V I C E

Excellence in the ormulation o policy and management practices withroom or creative dissent. Implementation o policy and management

practices, regardless o personal views.

A C C O U N T A B I L I T Y

Responsibility or achieving United States oreign policy goals

while meeting the highest perormance standards.

C O M M U N I T Y

Dedication to teamwork, proessionalism, and the customer perspective.

D I V E R S I T Y

Commitment to having a workorce that represents the diversity o America.

President Obama and Secretary Clinton in

Cairo, Egypt, June 2009. AFP Image



Promoted the adoption o tough UN Security

Council Sanctions on North Korea.

Built seven new acilities around the world,moved nearly 1,500 employees into saer work

environments, and completed eight major physical

security upgrade projects at existing acilities.

Required that all new embassy and consular

buildings receive the U.S. Green Building

Council’s Leadership in Energy and Environmental

Design certication, which veries strategies

and improvements to achieve energy and natural

resource conservation.

Opened our new U.S. Passport Agencies in: Dallas, exas; ucson,■

Arizona; Detroit, Michigan; and Minneapolis, Minnesota; andissued over 13 million passports and six million visas.

Expanded our workorce to signicantly strengthen our ability ■

to deliver more eective diplomacy and development programs,

adding approximately 600 Foreign Service Ofcers.

Our achievements in the Administration’s rst year provide a solid

oundation or the road that lies ahead. Our priorities are clear – to

ourselves, our riends, and our adversaries. We will ensure that the

extraordinary story the United States has to tell is presented clearly

and eectively across the world.

rue partnership is based on shared eort and responsibility. Te

Department o State and USAID together prepared this report toprovide a succinct analysis o our investment o citizens’ resources

in U.S. oreign policy. I am pleased to oer this summary o key

perormance, budget, and nancial inormation and note that the

data herein are complete and reliable in accordance with guidance

rom the Ofce o Management and Budget.

I am proud to represent the thousands o employees, including both

Americans and Foreign Service Nationals, who serve at more than 260

posts worldwide. Our strength lies in the talent and determination o all

our employees who work tirelessly to ensure the saety o the American

people and enhance the global leadership o the United States. We look

orward to continuing to serve alongside them as we work together todemonstrate America’s values, advance America’s interests, and help

build a world in which all people have the opportunity to live healthy,

peaceul lives, and achieve their true human potential.

Hillary Rodham Clinton

Secretary o State

April 30, 2010

Message froM the secretary of state

2 |Department of State-USaID JoInt SUmmary of performance anD f InancIal InformatIon • f IScal yea r 2009



Responded to 57 lie-threatening disasters in■

46 countries providing more than $754 million

to those in need. In all cases, USAID responded within 72 hours o declared disasters.

Trough the Development Leadership Initiative,■

increased USAID’s workorce by 207 Foreign

Service Ofcers in FY 2009, signicantly

strengthening its ability to deliver more eective

development programs.

Launched a new worldwide integrated procurement

system, Global Acquisition and Assistance System,

improving the efciency and eectiveness o a

critical Agency business process.

For the seventh consecutive year, earned unqualied opinions on■

its nancial statements, a representation that these statements

airly present the nancial condition o the Agency.

All these accomplishments are possible due to the commitment

and talent o our workorce overseas and at home. Many Agency

proessionals endured hardship, spent time away rom amilies, and

even put their lives in danger to help partner nations. In act, 40% o

USAID’s Foreign Service Ofcers have served in Iraq, Aghanistan,

Pakistan or Sudan.

I am pleased to certiy that the perormance and nancial data are

complete and reliable. It is USAID’s policy that all perormance data

reported to the American public are assessed against standards o validity,integrity, precision, reliability, and timeliness to identiy the strengths

and weaknesses o the data and the extent to which they can be trusted

or programmatic decisions. A uller discussion o FY 2009 perormance

and data sources is available in the 2009 Foreign Assistance Perormance

Report published in the joint USAID and Department o State FY 2011

Foreign Operations Congressional Budget Justication.

Rajiv Shah

USAID Administrator

April 30, 2010

Message froM the UsaID aDMInIstrator

Department of State-USaID JoInt SUmmary of performance anD f InancIal InformatIon • f IScal yea r 2009| 3



oUr organIzatIons

DEPARTMENT OF STATE

Te Department, established by Congress in

1789, is the oldest and most senior executive agency o theU.S. Federal Government. Headquartered in Washington,

DC, it operates the diplomatic missions o the United States

in 180 countries and is responsible or implementing the

nation’s oreign policy. Te Department o State is the lead

U.S. oreign aairs agency within the Executive Branch, and

its head, the Secretary o State, is the President’s principal

oreign policy advisor.

Te Department promotes and protects the interests o

American citizens by:

Promoting peace and stability.■

Creating jobs at home by opening markets abroad.■

Facilitating external travel and regulating internal■

immigration.

Helping developing nations establish investment and■

export opportunities.

Bringing nations together to address global problems such as■

cross-border pollution, the spread o communicable diseases,

terrorism, nuclear smuggling, and humanitarian crises.

Te Department operates more than 260 Embassies, consulates,

and other posts worldwide staed by 12,000 Foreign Service

Ofcers and a 9,000 member Civil Service corps. In each

Embassy, the Chie o Mission (usually an Ambassador)

is responsible or executing U.S. oreign policy goals and

coordinating and managing all U.S. Government (USG)unctions in the host country. Te President appoints each

Ambassador, who is then conrmed by the Senate. Chies o

Mission report directly to the President through the Secretary.

Te U.S. Mission is also the primary USG point o contact

or Americans overseas and oreign nationals o the host

country. Te Mission serves the needs o Americans traveling,

working, and studying abroad, and supports Presidential and

Congressional delegations visiting the country.

At headquarters in Washington, DC, the Department’s

mission is carried out through six regional bureaus, each o which is responsible or a specic geographic region o the

world, the Bureau o International Organization Aairs, and

numerous unctional and management bureaus. Tese bureaus

provide policy guidance, program management, administrative

support, and in-depth expertise in matters such as law

enorcement, economics, the environment, intelligence, arms

control, human rights, counternarcotics, counterterrorism,

public diplomacy, humanitarian assistance, security,

nonprolieration, consular services, and other areas.

In carrying out these responsibilities, the Department o Stateconsults with Congress about oreign policy initiatives and

programs, and works in close coordination with other Federal

agencies, including the Department o Deense, USAID, the

Department o the reasury, and the Department o Commerce,

among others.

sMart Power

S

mart power is a concept championed by Secretary o State

Hillary Clinton. The Obama Administration recognizes thatthe United States and the world ace great peril and urgent oreign

policy challenges, including ongoing wars and regional conicts,

the global economic crisis, terrorism, weapons o mass destruction,

climate change, worldwide poverty, ood insecurity, and pandemic

disease. Military orce may sometimes be necessary to protect

our people and our interests. But diplomacy and development are

equally important in creating conditions or a peaceul, stable and

prosperous world. Smart power requires reaching out to both riends

and adversaries, bolstering old alliances and orging new ones.

Smart power or the Department o State and USAID translates into

specifc policy approaches in fve areas. First, the Department oState and USAID will update and create vehicles or cooperation

with our partners; second, both agencies will pursue principled

engagement with those who disagree with us; third, both agencies

will elevate development as a core pillar o American power; ourth,

the Department o State and USAID will integrate civilian and military

action in conict areas; and fth, the Department o State along with

USAID will leverage key sources o American power, including our

economic strength and the power o our example.

IntroductIon




In 1961, the U.S. Congress passed the

Foreign Assistance Act to create an agency to administer long-range economic and humanitarian assistance to developing

countries. wo months ater passage o the act, President

John F. Kennedy established the United States Agency or

International Development (USAID). USAID unied

pre-existing U.S. assistance programs and today continues to

be the U.S. Government’s lead agency in providing assistance

to the developing world.

USAID is an independent Federal agency that receives

overall oreign policy guidance rom the Secretary o State.

With its headquarters in Washington, DC and 88 missions worldwide, the Agency provides economic, development, and

humanitarian assistance around the world in support o the

oreign policy goals o the United States. USAID accelerates

human progress in developing countries by reducing poverty,

advancing democracy, building market economies, promoting

security, responding to crises, and improving quality o lie.

Working with governments, institutions, and civil society,

the Agency assists individuals to build their own utures by

mobilizing the ull range o America’s public and private

resources through U.S. expert presence overseas.

In FY 2008 and FY 2009, USAID embarked on an aggressive

eort to increase and revitalize its workorce. Te Development

Leadership Initiative (DLI) strengthened USAID’s overseas

workorce, substantially increasing Foreign Service sta to

address critical development and humanitarian assistance

issues. At the end o FY 2009, the total number o USAID

employees was 7,904, including 1,580 Foreign Service Ofcers,

1,222 Direct Hire Civil Service Ofcers, 4,235 Foreign

Service Nationals and 867 other non-direct hire employees.

In all, 2,193 USAID employees are based in Washington

and 5,711 overseas.

USAID plans its development and humanitarian assistance

programs in cooperation with the Department o State,

and collaborates with a variety o other Federal agencies,

multilateral and bilateral organizations, private companies,

academic institutions, and nongovernmental organizations.

USAID

a whole-of-governMent aPProach to assIstIng hIghl

vUlnerable chIlDren

Public Law 109-95, the Assistance or Orphans and VulnerableChildren in Developing Countries Act o 2005, was signed into

law our years ago to respond to the global orphans and vulnerable

children crisis. The act calls or the USG response to be comprehensive

coordinated, and eective. Seven Federal departments and agencies

– Agriculture, Deense, Health and Human Services, Labor, State,

Peace Corps, and USAID – provided approximately $5 billion to assist

vulnerable children and their amilies in FY 20081. PL109-95 supports

a whole-o-government approach through collaboration across multiple

USG agencies and ofces to make the impact on children o our

collective eort greater than the sum o its individual parts.

An interactive database has been developed to acilitate interagency

strategic planning and coordination. The database currently includes

inormation on intervention areas, target groups, recipient organization

and budgets or 2,044 projects in 113 countries.

Some o the programs already in place include:

Providing humanitarian and emergency assistance to children in■

dire need o immediate help due to natural disasters or conict,

including children who are reugees or internally displaced, and

children associated with armed groups/orces.

Assisting children outside amily care, including many orphans■

and street children.

Responding to children who are involved in or vulnerable to■

the worst orms o child labor.

Providing care, support, and treatment to children aected by■

HIV/AIDS.

Strengthening amilies and their protective capacities and thus■

prevent children rom being abandoned, abused, exploited,

and otherwise highly vulnerable.

Enabling amilies to care or disabled children and decrease■

the risk o abandonment.

Preventing child marriage.■

Building child welare capacity to a critical mass and thus enable■

countries to identiy and respond to highly vulnerable children.

For more inormation on the implementation o PL109-95, visit:

http://pd.usaid.gov/pd_docs/PDACN600.pd .

1 FY 2009 data not yet available.

IntroductIon




DePartMent of state-USAID

JoInt strategIc goal fraMework

T

he Department o State-USAID Joint Strategic Plan or

Fiscal Years 2007-2012 is anchored in the National

Security Strategy and denes the primary aims o U.S. oreign policy and development assistance. Te strate-

gic ramework outlined in the gure below is comprised o

seven strategic goals and 39 cross-cutting strategic priorities.

Te Joint Strategic Plan ullls the Department o State’s and

USAID’s obligation or agency-level planning as mandated

by the Government Perormance and Results Act o 1993.

Te Joint Strategic Plan serves as a ramework or policy and

program goals at the country, regional, and global levels andis an organizational tool through which the Department o

State and USAID manage U.S. Government resources e-

ciently. Learn more about the Joint Strategic Framework

at http://www.state.gov/s/d/rm/rls/dosstrat/2007/ or http://

www.usaid.gov/policy/coordination/stratplan_y07-12.html .

Visa Services

Passport Services

American CitizenServices

Planning andAccountability

Human Resources

InformationTechnology

Security

Facilities

AdministrativeServices

Rightsizing theU.S. GovernmentOverseas Presence

Offer a PositiveVision

MarginalizeExtremism

Nurture CommonInterests and Values

Means for Migration

Protection,Assistance, andSolutions

Orderly Humane

Management

Disaster Preventionand Mitigation

Private Markets andCompetitiveness

Trade andInvestment

Energy Sector

Environment

Agriculture

Infrastructure

Homeland Security

Counternarcotics

Transnational Crime

Conflict Prevention,Mitigation, and

Response

Social Services andProtection for

Especially VulnerablePopulations

Rule of Law andHuman Rights

Good Governance

Civil Society

PoliticalCompetition and

Consensus-Building

Health

Education

Counterterrorism

SecurityCooperation andSecurity Sector

Reform

Achieving Peaceand Security

Governing Justly andDemocratically

Investing inPeople

Promoting EconomicGrowth andProsperity

ProvidingHumanitarian

Assistance

PromotingInternational

Understanding

StrengtheningConsular andManagementCapabilities

EconomicOpportunity

L e g e n d

Joint Strategic Goals

Joint Strategic Priorities

CombatingWeapons of MassDestruction and

DestabilizingConventional

Weapons

Financial Sector

MacroeconomicFoundation for

Growth

Department of State-USAID Joint Strategic Goal Framework

QUaDrennIal DIPloMacy anD DeveloPMent revIew

In July 2009, Secretary Clinton announced the Quadrennial Diplomacy

and Development Review (QDDR). The QDDR will provide the

short-, medium-, and long-term blueprint or U.S. diplomatic anddevelopment eorts. The goal is to use this process to guide the United

States to agile, responsive, and eective institutions o diplomacy

and development, including how to transition rom approaches no

longer commensurate with current challenges; leveraging the ull

range o American policy tools and resources; measurably impacting

global progress in security, prosperity, and wellbeing; preventing

and responding to crises and conict; and providing strong, exible

management platorms to support institutional objectives. The QDDR

will, among other things, oer guidance on how State and USAID

should update methodologies; deploy sta; add new tools and hone

old ones; and exercise new or restored authorities. At base, it will

begin to align policy, strategy, capabilities, authorities, and resources—human and fnancial—to ensure eective execution o solutions to

national security priorities.

The frst phase o a deliberative process was completed soon ater

the end o FY 2009. This phase urther identifed and refned the

capabilities State and USAID require to carry out our missions more

eectively. In FY 2010 State and USAID will complete discussions in

Washington and the feld about how they can address the identifed

institutional gaps and areas where we lack necessary capabilities.

For more inormation visit http://www.state.gov/s/dmr/qddr/ .

IntroductIon




T

o manage the successes and meet the challenges o diplo-

macy and development in the 21st century, the Depart-ment o State and USAID are continually strengthening

their management capabilities. Tis section summarizes selected

accomplishments and key management challenges o the

Department o State and USAID. In FY 2009, both agencies

demonstrated signicant improvements in key management

capacities, such as human resources, acquisition and assistance,

and inormation technology. Te management challenges, as

identied by the agencies’ respective Inspectors General and the

U.S. Government Accountability Ofce (GAO) represent areas

or continued improvement as well as potential risks.

M ANAgEMENT ACCOMPLISHMENTS – STATE

Inormation Technology (IT) Support Consolidation. I

Consolidation centralizes domestic computer desktop support

service in order to standardize systems and congurations,

improve customer service and security, and contain costs.

In 2009, the Department consolidated nine additional bureaus,

bringing the percentage o bureaus consolidated to 76%, and the

percentage o bureaus in the process o consolidation to 100%.

Overseas Posts Management Consolidation. In 2007, the

Department and USAID began to consolidate administrative

support services overseas to improve the efciency and

eectiveness o management operations. In 2008 and 2009,

consolidation continued at additional posts. Te Department

and USAID are now planning consolidation activities at the

remaining posts where both agencies are represented.

Greening Diplomacy Initiative (GDI). Launched by Secretary

Clinton on Earth Day 2009, GDI incorporates greening and

sustainability into the Department’s everyday operations. In

recent years, Department domestic acilities received one Green

Globes environmental certication rom the Green Building

Initiative, two Energy Star certications rom the Environmen-

tal Protection Agency and the Department o Energy, and one

Leadership in Energy and Environmental Design (LEED) gold

certication rom the U.S. Green Building Council. Under a

pilot recycling study in FY 2009, the Department recycled 24%

o non-hazardous solid waste generated by six acilities in the

Washington, DC area and about 80% in ten Northern Virginia

sites. Te Department regularly recycles about 75% o all

construction debris generated during large renovation projects.By the end o FY 2009, the Department had 556 E85 ex-uel

vehicles (FFVs), 19 compressed natural gas vehicles, and 17

gasoline hybrid electric vehicles in the domestic eet, as well

as 146 FFVs in the overseas eet. Te Department launched a

bicycle pilot program or State employees as an eort to reduce

its carbon ootprint. In FY 2010, uture “greening” initiatives

continue through a comprehensive sustainability study o the

Department’s worldwide operations.

Collaborative Management Initiative (CMI). At Embassies

and consulates abroad, the Department provides administrativesupport services both to itsel and other USG agencies. In

early 2009, the Department began implementing a world-

wide platorm (eServices) to improve its provision o 195

dened administrative services overseas. Personnel rom

all USG agencies abroad use eServices to electronically

request administrative support services such as ofce repair/

maintenance or procurement o supplies. Envisioned as a

one-stop shop, eServices provides a universal look and eel to

customers worldwide and automatically captures perormance-

related metrics to determine whether service perormance

standards are being met by the Department’s service providers. At the end o 2009, 53% o the Department’s Embassies and

consulates were generating validated perormance data rom

eServices and receiving eedback on the services they provide

to their customers.

Human Resources Shared Services (HRSS). HRSS establishes

a single, integrated human resources service delivery system

throughout the Department to enhance customer service

and reduce processing times and overall costs. In 2009, the

Department integrated ve additional bureaus and well over

3,000 employees into its shared services delivery model. It also

launched an online searchable database o more than 1,600

HR-related items, receiving more than 6,000 visits in the

rst two months alone.

Rightsizing. Mandated by Congress, the Rightsizing Program

ensures that each overseas mission maintains the minimum

number o personnel with the right skills to carry out its strate-

gic goals. In 2009, rightsizing reviews lowered ve-year stafng

ManageMent HIgHlIgHts


M anageMent hIghlIghts



projections by a total o 506 positions worldwide. Tis will

result in an estimated annual cost savings o $105 million in

personnel costs and $137 million in capital construction costs.

Fee-or-Service Acquisitions. Beginning in 2008, the

Department’s Ofce o Acquisition Management became

a ee-or-service provider. Under this working capital undmodel, the ofce charges an internal ee to Department bureaus

or the contracts and grants that it awards on their behal. Te

Ofce o Acquisition Management uses these assessments to

improve its service to the bureaus and re-align its work capacity

to match evolving Department policy and program priorities.

Tis new way o operating has allowed the Department to

enhance its procurement capacity, provide better service,

and increase strategic sourcing o supplies and services.

As a frst step in developing the President’s perormance agenda, the

White House Ofce o Management and Budget (OMB) requested

agencies to identiy a limited number o high priority perormance

goals (HPPGs). The Department and USAID have selected eight

outcome-ocused goals, listed below, that reect the Secretary’s and

Administrator’s highest priorities rom now through FY 2011.

Aghanistan and Pakistan.■

Strengthen the host country capacityto eectively provide services to citizens and enhance the long-

term sustainability o development eorts by increasing the number

o local implementers (government and private) that can achieve

a clean audit to clear them to manage civilian assistance unds.

Iraq.■ Helping the Iraqi people continue to build a sovereign,

stable, and sel-reliant country as the United States transitions

rom military to civilian responsibility in Iraq, measured by

improvements in security, political, and economic metrics.

Global Health.■ By FY 2011, countries receiving health assistance

will better address priority health needs o women and children,

with progress measured by USG and UNICEF-collected data and

indicators. By 2015, the Global Health Initiative aims to reduce

mortality o mothers and children under fve, saving millions o

lives, avert millions o unintended pregnancies, prevent millions

o new HIV inections, and eliminate some neglected tropical

diseases.

Climate Change.■ By the end o FY 2011, U.S. assistance will

have supported the establishment o at least 20 work programs to

develop Low-Carbon Development Strategies (LCDS) that contain

DePartMent of state & UsaID hIgh PrIorIty PerforMance goals

measurable, reportable, and verifable actions. This eort will

lay the groundwork or at least 30 completed LCDS by the end

o FY 2013 and meaningul reductions in national emissions

trajectories through FY 2020.

Food Security.■ By FY 2011, up to fve countries will demonstrate

the necessary political commitment and implementation capacities

to eectively launch the implementation o comprehensive oodsecurity plans that will track progress towards the country’s frst

Millennium Development Goal (MDG1) to halve poverty and

hunger by FY 2015.

Democracy, Good Governance, and Human Rights.■ Facilitate

transparent, participatory, and accountable governance in 23

priority emerging and consolidating democracies by providing

training assistance to 120,000 rule o law proessionals, civil

society leaders, democratically elected ofcials, journalists, and

election observers over the 24-month period o October 1, 2009

through September 30, 2011.

Global Security – Nuclear Nonprolieration.■ Improve global

controls to prevent the spread o nuclear weapons and enable

the secure, peaceul use o nuclear energy.

Management – Building Civilian Capacity.■ Strengthen the

civilian capacity o the Department o State and USAID to conduct

diplomacy and development activities in support o the oreign

policy goals by strategic management o personnel, eective

skills training, and targeted hiring.

Strategic Sourcing Initiative. In FY 2009, the Department

began participating in the General Services Administration’s

Federal Strategic Sourcing Initiative Ofce Supply Program.

Tis program has simplied the purchase o supplies or the

Department’s ofces in the United States; provided tangible

benets, such as acilitating the purchase o “green” ofce

supplies; and is an eective cost cutting strategy.

American Recovery and Reinvestment Act (ARRA). Te

Department received $602 million in ARRA unds, o which

$38 million was transerred to USAID. Te Department will

use ARRA unds to create and save jobs, repair and modernize

domestic inrastructure crucial to the saety o American

citizens, and expand consular services oered to American

taxpayers. By the end o 2009, the Department had obligated

59% o its ARRA unds. Te Department’s Ofce o the

Inspector General (OIG) has planned nine audits to provide

oversight o the ARRA unds.





M ANAgEMENT ACCOMPLISHMENTS – USAID

Expanding the Workorce. Te Agency is expanding its

overseas workorce, increasing existing sta capacity through

training and development, and improving personnel and inor-

mation technology systems. Under the Agency’s Development

Leadership Initiative (DLI), USAID has set a goal to double its

permanent Foreign Service Ofcer (FSO) corps over the next

several years – an increase o 1,200 new positions in total. o

date, the Agency has selected 543 candidates, sworn in 374

ofcers, and sent 165 DLIs to post, strengthening USAID’s

technical and leadership capacity. New FSOs hired under the

DLI will work in more than 90 countries around the globe to

promote stability, reduce crises, and allow the Agency to take

a more direct role in the design, implementation, and evalua-

tion o development programs. Tis strengthened FSO corps

will provide USAID with greater depth and breadth across

technical areas, bringing a wider range o oreign language

expertise, more partnership activities, enhanced capacity to

ensure accountability, and better-targeted and more tailored

local programming. Te Agency will be able to assign ofcers to

work directly with their counterparts at all levels o government.

Promoting Diversity. Te Agency made increasing diversity

a priority. For example, DLI recruitment is explicitly targeted

to under-represented minority groups by recruiting at Histori-

cally Black Colleges and Universities and through the League o

United Latin American Citizens. Te Agency also established a

new Ofce o Civil Rights and Diversity (OCRD). Te OCRD will promote diversity throughout the Agency and attend to a

broad range o diversity issues such as promotions, outreach,

accountability, and attention to historically overlooked groups.

Enhancing Crisis Response. USAID is providing leadership

on behal o the U.S. Government in response to the new

challenges in the developing world. Under the Civilian

Stabilization initiative, the Agency is recruiting specialized Civil

Service personnel to enhance its development-oriented crisis

response capacity. Te Agency projects a total o 91 Civilian

Response Corps active sta. Currently, nearly a third o theseare on board. USAID is also posting ofcers as development

advisors to combatant commands and conducting joint

planning exercises with the Department o Deense. A total

o 65 DLI ofcers will be Crisis Response, Humanitarian

Assistance, and Democracy and Governance ofcers.

Critical Priority Countries. USAID continues to show

leadership and results in the critical priority countries in which

it works, rom Aghanistan and Pakistan to Iraq and Sudan.

Te Agency’s surge eorts in Iraq in 2006 and 2007 have been

successul and, as a result, it is now reducing its ootprint in

these countries.

Acquisition, Assistance, and Other Systems. Expansions in

USAID’s workorce need to be supported by robust manage-

ment tools and systems, one o which is the Global Acquisition

and Assistance System (GLAAS). Funded with the $38 million

USAID received under ARRA, GLAAS is a new worldwide inte-

grated procurement system that will help to reduce dependence

on outside contractors. o date, GLAAS has been deployed to

21 Missions and all or part o six Washington bureaus.

Private Sector Partnerships. Since 2001, USAID has lever-

aged substantial private sector resources, and has established900 Global Development Alliances with over 1,700 partners

to leverage $9 billion in resources. Te Agency has made

over $1 billion available to underserved markets though the

Development Credit Authority, bolstering the capacity o host

countries to nance their own development. Also, in keeping

with its vision o development partnership, it has prioritized

the establishment o cost-sharing agreements with emerging

donor governments.

IraQ – strengthenIng the bIlateral relatIonshIP

State and USAID are supporting the Strategic

Framework Agreement (SFA), the oundation or a long-

term bilateral relationship with Iraq. This support includes:

bolstering Iraq as it strengthens rule o law; enhancing

educational and technical training; promoting academic

linkages; and, promoting economic opportunities and

job creation through expansion and diversifcation o the

economy, principally through private sector development

and oreign direct investment. Activities to achieve

normalization also support the implementation o the SFA,

including assistance with: the political process; national

unity within the ramework o a unifed ederal Iraq; and,

the development o a diversifed, advanced economy

that is integrated into the international community.





M ANAgEMENT CHALLENgES – STATE

Te Department o State aced signicant challenges in FY 2009 associated with protection o people and

acilities, inormation security, nancial management, contracting and procurement, counterterrorism and

border security, public diplomacy, coordinating oreign assistance, stafng and oreign language prociency, working in

conict areas, managing or results, acquisition and assistance, human capital management, and inormation technology

management. Te ollowing outlines management challenges or the Department or FY 2009 identied by the OIG and

GAO. Te management challenges are ollowed by a brie description o actions taken and actions remaining. Te ull OIGstatement or the Department o State can be ound on pages 121-124 o the Department’s FY 2009 Agency Financial Report at:

http://www.state.gov/documents/organization/132214.pd .

FY 2009 STATE MANAGEMENT CHALLENGES

PRoTECTIoN oF PEoPLE AND FACILITIES

oIGChallenge

Security Personnel Stafng and Preparedness. The Department must initiate a more strategic approach to the growingdemands placed on its security personnel, increase personnel eciency and eectiveness, and nd ways to accelerateimplementation o security measures in response to new threats.

ActinsTaen

Using lessons learned in Iraq and Aghanistan, the Department established protective operations and emergency response teamsto protect Americans in Peshawar, Pakistan, one o the most dangerous posts.

ActinsRemaining The Department will integrate more strategic approaches to growing security requirements, urther streamline the process toupdate these requirements, and work with other U.S. agencies served by Department security services abroad to share in thecosts o these requirements.

oIGChallenge

Overseas Facilities. Until the Department replaces all overseas acilities that do not meet security standards, it must identiyand implement temporary mitigating measures.

ActinsTaen

In 2009, the Department completed seven new Embassy compounds, moving nearly 1,500 people into more secure installations,implemented ten major compound security upgrade projects, and prepared the rst Long-Range Overseas Maintenance Plan toprotect new acility investments and capture maintenance requirements in our legacy buildings.

ActinsRemaining

The Department will identiy and implement urther measures to mitigate threats to people, acilities, and inormation until allacilities are ully secured.

INFoRMATIoN SECuRITY

oIGChallenge Protection o Personally Identifable Inormation. The Department must continue to ocus and improve on recentlyidentied weaknesses in its eorts to protect Personally Identiable Inormation (PII).

ActinsTaen

The Department has made signicant improvements in its protection o PII, including developing a more robust Privacy ImpactAssessment to identiy privacy risks and vulnerabilities in new or substantially modied inormation systems, examininginormation sharing agreements with other entities to ensure that adequate protections are in place, and continuing internalreviews o selected business processes to ensure the collection o only the minimum amount o PII to meet business objectives.

ActinsRemaining

Additional eorts are ongoing in this area, but the Department will continue enacting greater saeguards to protect theprivacy o PII.

oIGChallenge

Use o Laptops. The Department must improve its laptop inventory system and encryption procedures, as well as its tracking o security awareness training.

ActinsTaen

State has enhanced its laptop procedures by strengthening its laptop inventory process, implementing automatic alert proceduresor every inormation security-related breach involving laptops without a waiver, requiring installation o encryption on all

laptops, and mandating laptop-specic security awareness training or all laptop users. ActinsRemaining

The Department will take additional measures to ully address OIG’s ndings.

FINANCIAL MANAGEMENT

oIGChallenge

Financial System Controls. During an independent external audit o the Department’s nancial statements, the auditor couldnot express an opinion by the mandated deadline due to the Department’s untimely response to a document request.

ActinsTaen

The Department subsequently provided sucient documents, and the auditor concluded that the amounts presented in thenancial statements were materially air, and in conormity with generally accepted accounting principles. Overall, theDepartment continued to improve controls over nancial management.

ActinsRemaining

State will address certain deciencies in its internal nancial system controls, and improve compliance with ederal nancialmanagement requirements.

(continued on next page)





FY 2009 STATE MANAGEMENT CHALLENGES (continued)

CoNTRACTING AND PRoCuREMENT

oIGChallenge

Procurement Management. The Department must improve procurement planning and documentation, as well as contractadministration and oversight.

ActinsTaen

Although procurement volume increased signicantly in recent years, there was no corresponding increase in contracting sta.The Department generally ollowed applicable contracting requirements in soliciting and awarding contracts. It also made

signicant improvements in the timeliness o some o its payments by providing greater oversight o the payment process,resulting in a dramatic reduction in some interest payments.

ActinsRemaining

The Department will urther improve management oversight o its procurement process.

CouNTERTERRoRISM AND BoRDER SECuRITY

oIGChallenge

Cross-Border Issues. The Department must anticipate and adequately prepare or the implementation o recent statutoryrequirements and oreign policy initiatives that will impact cross-border issues and result in increased stang, resource, andoversight demands.

ActinsTaen

In collaboration with the Department o Homeland Security and other USG agencies, State continues to improve technologyat ports o entry, the security o travel documents, and the screening technology used by ocials at home and abroad.

ActinsRemaining

The Department will address increased stang, resource, and oversight demands including the implementation o the WesternHemisphere Travel Initiative, requiring travel documents or all land, sea, and air travelers in the region, and border crossing cardreplacement.

PuBLIC DIPLoMACY

oIGChallenge

Integration Initiatives. The Department must urther develop public diplomacy integration initiatives internally as well asat the interagency level, and needs to continue searching or new ways to conduct public diplomacy.

ActinsTaen

The Department made important progress to make public diplomacy part o a total diplomatic eort. It successully embeddedpublic diplomacy into some regional planning. It also reached out to oreign audiences worldwide through a mobile phone textmessaging system, a team o online bloggers, the America.gov website, Twitter, interactive multimedia platorms, and virtualpresence posts.

ActinsRemaining

The Department will continue integrating public diplomacy into policy ormation, urther disseminate successul integrationeorts, and continue leveraging new technologies. Public Diplomacy will continue to bring strategic ocus to how publicdiplomacy programs, resources, and structures support oreign policy objectives.

CooRDINATING FoREIGN ASSISTANCEoIG/GAo1 Challenge

Planning. The Department must advance a time rame or developing a comprehensive U.S. oreign assistance strategy, clearlycapture all relevant programs and activities in its planning process, and improve coordination and nancial management o itsoreign assistance unds.

ActinsTaen

State has taken steps to provide a comprehensive view o all U.S. oreign assistance activities in every country in which U.S.resources are targeted, and continue working to integrate oreign assistance planning and budgeting into the strategic planningo other oreign policy goals. The Department initiated a pilot ve-year country assistance strategy program, changed the budgetormulation process, and implemented a joint Department and USAID budget process. Additionally, it recently reinvigorated itscapacity to monitor and evaluate oreign assistance by increasing sta, training, and technical resources.

ActinsRemaining

Under the leadership o the new Deputy Secretary or Management and Resources, State is undertaking eorts to better integrateoreign assistance into Department operations.

STAFFING AND FoREIGN LANGuAGE PRoFICIENCY

oIG/GAo2 Challenge

Language Training. The Department continues to have persistent gaps in its oreign language capabilities due to overall stangshortages, which limit the number o sta available or language training, and the recent increase in language-designatedpositions.

ActinsTaen

State took an essential rst step by conducting additional hiring above attrition levels. Additionally, it convened an internallanguage working group to urther department-wide communication and collaboration in all language-related issues.

ActinsRemaining

The Department is in the process o developing a personnel simulation model to determine needs more accurately, and betterbalance training and operational requirements and stang resources.

1 For more inormation, go to http://www.gao.gov/new.items/d09192.pd, pg. 45 .

2 For more inormation, go to http://www.gao.gov/products/GAO-09-1046 .


Department of State -USaID JoInt SUmmary of performance anD f InancIal InformatIon • f IScal yea r 2009| 11



M ANAgEMENT CHALLENgES – USAID

Every year, USAID’s OIG identies management challenges that aect the ability o the Agency to deliver

oreign assistance. Te FY 2009 challenges relate to working in conict areas, managing or results, acquisitions

and assistance, human capital management, and inormation technology management. In response to OIG’s recommendations,

the Agency takes immediate remedial actions. Some highlights are outlined below. See the FY 2009 USAID Agency Financial

Report at http://www.usaid.gov/policy/ar09/FY2009AFR11-16-09.pd (p. 111) or the OIG’s memorandum on this subject, datedNovember 3, 2009, and the ull Agency response.

FY 2009 uSAID MANAGEMENT CHALLENGES

WoRkING IN CoNFLICT AREAS

oIGChallenge

Aghanistan, Pakistan, and Iraq. Oversight o USAID programs is complicated by deteriorating security and a myriad otherproblems, including widespread corruption at the local level and USAID stang issues.

ActinsTaen

USAID/Washington continued to strengthen recruitment o appropriately skilled sta or Critical Priority Countries and issueda new policy on alternative methods or monitoring in High Threat Environments (HTEs). The Asia and Middle East bureaus alsolaunched a website on resources and best practices on monitoring in HTEs gleaned rom eld ocers, implementing partners andother organizations.

ActinsRemaining

Continuing investment in security and sta training are essential or eective and ecient program implementation. Furtheroutreach and dialogue with Department o State Regional Security Ocers, particularly in the Middle East and South and CentralAsia will continue with the goal o increasing USAID program managers’ access to eld sites.

MANAGING FoR RESuLTS

oIGChallenge

Assistance Planning. In FY 2009, 20 OIG audits reported that overall program perormance indicators and targets were notestablished, overall program targets were not assigned to specic contractors or grantees, and perormance targets in programmanagement plans, contracts and grants, and annual work plans were inconsistent or contradicted each other.

ActinsTaen

In 2009, USAID developed and implemented a training course on Managing or Results (MR) that aims to revitalize sta skillsin planning and perormance management including lessons on indicator selection, target setting, developing perormancemanagement plans, and incorporating monitoring and evaluation actions into contracts and grants. Approximately 140 peoplehave been trained to date.

Actins

Remaining

Additional MR workshops are scheduled to occur in FY 2010, and technical assistance to Missions and oces on perormance

management is ongoing.oIGChallenge

Results Reporting. Some o the perormance narratives do not place results in context or provide a balanced, objectivedescription o program perormance. In FY 2009, 18 OIG reports disclosed that data reported by USAID Operating Units (OUs) ortheir partners were misstated.

ActinsTaen

FY 2008 marked the rst year or all USAID and Department o State OUs (over 180 OUs) to submit a Perormance Plan and Report(PPR). Each PPR was reviewed and eedback provided to the OU noting the report’s strengths and weaknesses. I narratives lackedcountry context or linkages to outcome and impact goals, this was noted in a memo to the OU with a deadline or a revisedreport. The Department’s Oce o the Director or Foreign Assistance (State/F) conducted an ater action review (AAR) and surveyto identiy challenges that OUs aced in completing the PPR, to identiy and correct any misunderstandings, and to see where thePPR guidance and process could be claried, strengthened, or modied. The survey ndings were incorporated into the guidanceor the FY 2009 PPRs.

ActinsRemaining

F expects to continue to seek improvements in the way OUs report results and in the review o and eedback process to OUs.

ACquISITIoN AND ASSISTANCE

oIGChallenge

Deploying a Global Acquisition and Assistance System (GLAAS). Potential challenges or USAID include complying withthe American Recovery and Reinvestment Act o 2009 mandates, providing adequate direct-hire support or GLAAS activities, andmanaging various project artiacts.

ActinsTaen

USAID increased its sta's awareness and understanding o procedures or Recovery Act-related unds. The Agency staed GLAASwith direct hires in the lead positions required to address all challenges and strengthened the document review process to ensurethat all deliverables and documents are appropriately reviewed beore being nalized. The GLAAS team established a ormalControl Account Plan or carrying out the ull range o activities necessary to complete the project.

ActinsRemaining

Recovery Act invoice payments tracking has improved due to additional training and incorporation o eciencies. GLAAS directhire stang is adequate and standardization and improvement o all processes are ongoing.

(continued on next page)





FY 2009 uSAID MANAGEMENT CHALLENGES (continued)

ACquISITIoN AND ASSISTANCE (continued)

oIGChallenge

Using Perormance Based Contracting. The OIG audits have shown that USAID has not incorporated all o the FederalAcquisition Regulation requirements or perormance-based contracting or some o its procurements. For example, USAID didnot always incorporate meaningul perormance standards to the maximum extent practicable, use quality assurance surveillanceplans, or incorporate perormance incentives into the task orders to the maximum extent practicable.

ActinsTaen

USAID created a ull-time position in the Oce o Acquisition and Assistance or a perormance-based contracting expert toadvise on the subject. The individual was hired on schedule in January 2010.

ActinsRemaining

None.

HuMAN CAPITAL MANAGEMENT

oIGChallenge

Workorce Planning. USAID needs to continue to implement its workorce planning strategy to close skills gaps throughrecruitment, retention, training, succession planning, and other strategies.

ActinsTaen

USAID has developed and begun implementation o the DLI, the Human Capital Strategic Plan FY 2009-13, and a ve-yearworkorce plan or the same period.

ActinsRemaining

USAID will continue implementing all aspects o the Human Capital Strategic Plan and associated ve-year workorce plan,which will be updated to refect the strategic directives o the new administration.

INFoRMATIoN TECHNoLoGY MANAGEMENToIGChallenge

Implementing Homeland Security Presidential Directive-12 (HSPD-12) Initiative. USAID lacks the resources needed to carryout this Government-wide initiative and relies on the Department o State implementation plan until one is developed or USAID.

ActinsTaen

HSPD-12 identication cards were issued to all domestic USAID employees and Ronald Reagan Building physical access controlsare in place.

ActinsRemaining

Full compliance or physical access controls overseas is dependent on Department o State implementation.

greenIng DIPloMacy

The United States and other countries that have been the biggest historic emitters o greenhouse gasesshould shoulder the biggest burden or cleaning up the environment and reducing the U.S. carbon oot-

print. On Earth Day, April 22, 2009, Secretary Clinton launched the Greening Diplomacy Initiative (GDI), a new

commitment to lead by example and improve the sustainability o the Department o State’s acilities and operations.

The GDI will harness the Department’s policy, management, and public diplomacy capacities to advance greening

eorts and incorporate greening and sustainability into the Department’s everyday operations.

The HST building recycles nearly 250 tons o■

waste annually and on August 1, the caeteria

completely phased out styrooam cups, trays, and dishes.

The Department is recycling or reusing over 75% o all■

construction and demolition waste rom the ongoingHST renovations.

All new Embassy and consular building projects must receive■

the U.S. Green Building Council’s LEED certifcation.

Members o the League o Green Embassies are working with■

both the Departments o State and Energy toward a goal o

cutting energy usage at their embassies by 30% by 2015.

objecties f the Initiatie inclde:

Developing and implementing strategies that reduce the■

Department’s carbon ootprint.

Empowering employees to contribute to and participate in■

greening eorts.

Leveraging best practices internally and externally, and monitoring■

progress o the Department’s ongoing greening eorts.

Connecting the management o the Department with its■

diplomacy and development eorts.

Greening in Actin:

There are now 104 solar panels located on the roo o the Depart-■

ment o State’s main building, the Harry S Truman (HST) building.





Our diplomatic and development eorts to tackle the complex challenges o the 21 st century require a multiaceted“Smart Power” toolkit that draws upon the collective expertise o the entire U.S. Government. In Washington and

around the world, the Department o State and USAID experts work closely with dedicated colleagues rom many

agencies to ensure that U.S. diplomatic, development, and deense goals are pursued vigorously and comprehensively. Tis

section summarizes by region the key issues acing the United States as it engages bilaterally, regionally, and in multilateral

partnerships to advance U.S. oreign policy and international development goals.

AFRICA REgION

Tere has never been a more critical time to consolidate the

progress and promise o Arica. Home to approximately 800

million people, Arica is increasingly linked to global markets,holds vast natural resources, and will soon provide 25% o U.S.

oil imports. It is in the interest o the United States or Arica

to be stable, well-governed, and economically sel-sufcient with

healthy and productive populations. In addition to signicant

expanded engagement in ood security, climate change, and

democracy and governance, USG assistance will continue

to address the underlying causes o both conict and violent

extremism that threaten stability, democracy, and prosperity

in a number o countries. Furthermore, increased support

or trade and investment and private sector competitiveness

will encourage the strong economic growth needed to sustaingains in health, education, and democracy.

Promoting Conict Prevention and Good Governance.

Although wars in Liberia, the Democratic Republic o

the Congo (DRC), Angola, Burundi, Uganda, and Sierra

Leone, and the North-South conict in Sudan have ended

or dramatically abated, sub-Saharan Arica has recently

experienced signicant stagnation and challenges to its progress

towards democracy and good governance. A range o Arican

countries has been aected, and stagnation o progress towards

democracy and governance has stemmed in part rom military

coups, ethnic conict, and growing suppression o civil society.

Continuing conicts and lawlessness in the DRC and the Horn

o Arica remain major stability and peacekeeping challenges.

Most worrying are the democratic setbacks in countries that

have historically been considered “good perormers.” Regional

bodies such as the Arican Union have a growing potential to

provide leadership and share best practices, but the inuence

o poorly governed and autocratic states on these multilateral

institutions complicates the evolution toward better governance

in Arica. Tis eort relates to the Democracy, Good Governance, and

Human Rights High Priority Perormance Goal listed on page 8 .

Providing Food and Emergency Aid. Poor governance,conict, and corruption contribute to the need or billions o

dollars per year in ood and non-ood emergency assistance

rom the United States and other bilateral and multilateral

donors. Lacking any sustained political and economic

improvements, and with Arica’s population expected to double

by 2050 to 1.8 billion, the continent’s humanitarian needs

will only escalate. Tis eort relates to the Food Security High Priority

Perormance Goal listed on page 8.

LI L E

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AngolaBeninBotswanaBurkina FasoBurundiCameroonCape VerdeCentral Arican RepublicChadComorosCongo, Democratic

Republic o theCongo, Republic o the

Cote d’IvoireDjiboutiEquatorial GuineaEritreaEthiopiaGabonGambia, TheGhanaGuineaGuinea-BissauKenyaLesothoLiberia

MadagascarMalawiMaliMauritaniaMauritiusMozambiqueNamibiaNigerNigeriaRwandaSao Tome and PrincipeSenegalSeychelles

Sierra LeoneSomaliaSouth AricaSudanSwazilandTanzaniaTogoUgandaZambiaZimbabwe

*The Department o State uses both common and ofcial country names. This map uses common names.

dIploMacy and developMent regIonal HIgHlIgHts


DIPloMacy anD DeveloPMent

regIonal hIghlIghts



Investing in Healthcare. Robust support to ght prevalent

diseases aecting millions o Aricans will continue. Expanded

support to maternal and child health, amily planning, and

reproductive health will undergird stronger health systems.

U.S. Government programs have made signicant contribu-

tions, including reducing mortality among children under 5 by

14% since 1990. And in the ght against AIDS, malaria, andtuberculosis, the United States has been one o Arica’s major

partners. Tis eort relates to the Global Health High Priority Perormance

Goal listed on page 8.

Promoting Sustainable Economies and Education. Despite

the aid provided, Arica remains the poorest and most

economically vulnerable continent in the world, and the

current economic crisis threatens to reverse recent economic

gains. Now, more than ever, the United States must help

its Arican partners raise per capita income levels, promote

broad-based, sustainable growth, and improve the businessenvironment. U.S. support to basic education will continue

to be a key actor in educating Arica’s youth and providing

the skills they need or a healthy and productive lie.

E AST ASIA AND P ACIFIC REgION

Te East Asia and Pacic region accounts or nearly a third

o the Earth’s population and 25% o global gross domestic

product. As such, it plays a central role in shaping the course

o the world’s economy, maintaining international peaceand stability, and addressing key transnational issues such as

energy, environment and climate change, pandemics, and

nonprolieration.

Te region contains ve o the United States’ top 15 trading

partners and is home to long-standing treaty allies in Japan,

the Republic o Korea, Australia, the Philippines, and Tailand,

as well as security relationships through Compacts o Free

Association with the Marshall Islands, Micronesia, and Palau.

Exponential economic growth in China and elsewhere has

created market opportunities or U.S. goods and services while diusing prosperity more widely in the region, creating

burgeoning new middle classes, and accelerating regional

integration.

Meeting Security Challenges. Achieving denuclearization

o the Korean Peninsula is the U.S. goal in the region. Te

United States is strongly committed to, and continues to work

toward, ull and transparent implementation o all relevant

Security Council Resolutions that require the Democratic

People’s Republic o Korea to re-establish its moratorium

on missile launches and express “gravest concern” that itsmissile activities have “generated increased tension in the

region and beyond.” Tis eort relates to the Global Security –

Nuclear Nonprolieration High Priority Perormance Goal listed on page 8.

Reafrming U.S. Economic Leadership in Creating Economic

Stability and Sustainable Growth. In the wake o the global

nancial crisis, condence in U.S. economic stability, policy

prescriptions, and leadership have been shaken. Te U.S.

strategic priority is to reinvigorate U.S. economic leadership in

the ace o pressures to orge Asian stand-alone approaches and

to create sel-sustaining regional organizations.

Constructive and Cooperative Relationship with China.

China’s reemergence will aect U.S. interests in the areas

o peace and security, economic prosperity, health, and theexpansion o human dignity and democracy or generations

to come. State and USAID are broadening public outreach

and working with partners to realize a vision o a region that is

prosperous, stable, and democratic, and planning or rapidly

expanding engagement. How the United States works with

China today will shape the global geopolitical, economic,

security, and public health environment tomorrow.

LI C L E

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AustraliaBruneiBurmaCambodiaChina

FijiIndonesia Japan

KiribatiKorea, NorthKorea, SouthLaosMalaysia

Marshall IslandsMicronesiaMongolia

NauruNew ZealandPalauPapua New GuineaPhilippines

SamoaSingaporeSolomon Islands

TaiwanThailandTimor-LesteTongaTuvalu

VanuatuVietnam






Promoting Good Governance, Human Rights, and

Democratic Institutions in Transitional Countries. It is

a major priority to promote good governance, strengthen

public institutions, and create more vibrant, eective local

governments. Civil societies and media oster responsive central

governments and promote human rights. For example, U.S.

eorts in Burma continue to press or democratic transition,and make long-term investments that will help build civil

society and civic leadership needed to manage the enormous

governance challenges that will arise when political change

nally comes. In Fiji, the United States continues to work with

the Pacic Island Forum and other regional partners to press

or the return o democratic government. And in North Korea,

the USG carries on its commitment to keeping international

attention ocused on human rights abuses and the plight o

reugees. Tis eort relates to the Democracy, Good Governance, and

Human Rights High Priority Perormance Goal listed on page 8.

EUROPEAN AND EURASIAN REgION

Spanning 50 countries – and including critical relationships

with the North Atlantic reaty Organization (NAO), the

European Union (EU), and the Organization or Security and

Cooperation in Europe (OSCE) – the Department o State and

USAID engage with European and Eurasian partners to address

the greatest challenges acing our societies today. Europeansare oten the rst partners to which the United States looks or

leadership, support, and cooperation in any major initiative –

whether to combat terrorism and prolieration, resolve regional

conicts, mitigate the global economic crisis and restore

economic growth, address climate change and energy security,

promote global health, or advance American values.

A Peaceul, Free, and United Europe. With Central and East-

ern Europeans now core members o NAO and the EU – one

o the most signicant post-Cold War accomplishments – there

is still unnished business. Tese countries have stood by theUnited States in Aghanistan, Iraq, and the Balkans; have agreed

to partner with the United States on missile deense; and are

among the strongest advocates or democracy and human rights

worldwide. Te United States must sustain and strengthen the

relationships by demonstrating continued commitment to these

allies, while also encouraging them to make urther progress

on key internal issues including transparency and the rule o

law, combating anti-Semitism and extremism, and improving

respect or minority groups.

Democracy in the Caucasus and Europe’s East. Te

United States will continue to encourage peace, stability and

prosperity in the countries o the Caucasus and Europe’s

East – Armenia, Azerbaijan, Georgia, Ukraine, Moldova, and

Belarus. Te United States strongly supports the sovereignty

and independence o all European states, including those that

emerged rom the ormer Soviet Union. Te United States

supports Georgian territorial integrity and its right to choose

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United Kingdom


its own alliances, as well as Georgia’s democratic and market

transormation. Te United States will continue a policy o

non-recognition o Georgia’s separatist regions o Abkhazia and

South Ossetia, and must rmly reject the outdated notion o

“spheres o inuence” in the greater region. While working

to take advantage o historic opportunities or resolution

o the Nagorno-Karabakh conict between Armenia and

Azerbaijan, the United States is promoting rapprochement

between urkey and Armenia and encouraging reorm in

Armenia and Azerbaijan. In Ukraine, the goal is to bring the

country urther into the Euro-Atlantic amily, strongly support

Ukraine’s independence and territorial integrity, consolidate

democratic gains, and promote sound economic policies and

good governance. Tis eort relates to the Democracy, Good Governance,

and Human Rights High Priority Perormance Goal listed on page 8.





NATO and EU Membership in the Balkans. Considerable

U.S. engagement in the region has yielded tangible results, but

more work remains to secure a peaceul and prosperous uture.

An important goal is to keep NAO and EU membership pros-

pects credible by bolstering democratic institutions, strengthen-

ing rule o law, and promoting economic development - includ-

ing enhanced trade, investment, and job creation. Te UnitedStates must keep Serbia ocused on its EU path, bolster stability

and modernize governance structures in Bosnia, strengthen

independent Kosovo, support the completion o Croatia’s EU

accession and move Albania along the same path, while work-

ing to accelerate Macedonia’s and Montenegro’s integration into

NAO and the EU. At the same time, it will be essential to

nurture cooperative relationships among the countries o the

region, which must include acceptance o Kosovo as a ull and

equal partner, and as an eventual candidate or Euro-Atlantic

integration.

Renewed Relationship with Russia. Another regional issue

is a resh start in relations with Russia in order to cooperate

more eectively in areas o common national interest,

including reducing nuclear arsenals and securing the stability

o Aghanistan, and take advantage o opportunities that

contribute to shared progress and mutual prosperity, such as

deepening ties on trade and investment. Te United Statesis also working with Russia and European Allies to nd a

way orward on the Conventional Forces in Europe reaty,

which established comprehensive limits on key categories o

conventional military equipment in Europe and mandated the

destruction o excess weaponry. President Obama has rejected

the notion that relations between the United States and Russia

are a “zero-sum game,” and believes that the United States

and Russia can cooperate more eectively in areas o common

national interest and should deepen ties between societies to

contribute to uture progress and mutual prosperity. As the

United States seeks a resh start in relations, Russia must seek to resolve dierences in a candid and constructive way.

NEAR E AST REgION

Te Near East presents the United States with some o its most

pressing security and political issues. Te U.S. Government

is looking orward to a new horizon o peace and cooperation

based on a renewed commitment to the region to increase

prosperity, spread reedom, and counter extremist ideology.

Peace is the United States’ number-one priority or the Middle

East. Te United States will continue to help build a sover-

eign, stable, and sel-reliant Iraq; counter the malign inuenceo Iran and its nuclear ambition; and promote political, social,

and economic progress throughout the region.

Arab-Israeli Peace. Te United States will advance a two-

state solution to the Israeli-Palestinian conict. Te USG

will support a Palestinian Authority Government committed

to recognition o Israel, renunciation o violence, compliance

with previous agreements (including the Roadmap or Peace),

and assurance that the uture Palestinian state will be just,

viable, and democratic. While the U.S. commitment to Israel’s

security is unshakable, the United States endeavors to advancepeace on all tracks between Israel and its neighbors.

Principled Engagement with Iran. Te United States is

prepared or principled, respectul engagement with Iran.

A nuclear-armed Iran would threaten its neighbors, derail

eorts or comprehensive Middle East Peace, and pose a

threat to international security. Working with its partners,

the U.S. Government will conront Iran’s illicit behavior –

noncompliance with international nuclear obligations, state

sponsorship o terrorism, destabilizing activities in the MiddleEast, and an abysmal human rights record - on various ronts.

An Iraq that is Sovereign, Stable, and Sel-Reliant. Te

Iraqi and American people share a common goal or the uture:

an Iraq that is sovereign, stable, and sel-reliant. Te United

States supports an Iraqi Government that is just, representa-

tive, accountable, and provides neither support nor sae-haven

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to terrorists. Te U.S. Government will continue to help the

Iraqi people build a sovereign, stable, and sel-reliant country

as the U.S. transitions rom military to civilian responsibility

in Iraq. Tis eort relates to the Iraq-ransition rom Military to Civilian

High Priority Perormance Goal listed on page 8.

Strengthen the Security o Allies and Combat Extremismwhile Advancing Moderate Politics and Tolerance throughout

the Region. Te United States will continue to support

military, law enorcement, and regulatory mechanisms

to combat terrorism and terrorism nance in partnership

with regional governments. Social, economic, and security

cooperation are critical to moderate governments’ abilities to

combat extremism and terrorism, and to deend against external

threats. Tis eort relates to the Democracy, Good Governance, and Human

Rights High Priority Perormance Goal listed on page 8.

Compliance with International Agreements and Norms. Te

United States will work to encourage governments to comply

with internationally accepted standards o behavior, includingthose pertaining to human rights and worker rights. Te U.S.

Government remains committed to the goal o a Middle East

ree o weapons o mass destruction and support or universal

adherence to the reaty on the Nonprolieration o Nuclear

Weapons and other international nonprolieration agreements.

SOUTH AND CENTRAL ASIA REgION

Tere are ew regions o the world where the stakes are higher

or U.S. national security than in South and Central Asia. Asthe USG tries to eliminate terrorist sae havens in Aghanistan

and Pakistan, it also pursues a comprehensive strategy that

addresses the root causes o violent extremism and instability

throughout the region. Tis is also a region o extraordinary

opportunity or new political and economic openings and or

growing partnerships.

Building Security and Stability. Stability in Aghanistan and

Pakistan remains a critical priority. As the United States works

to deeat terrorist networks, expand government directives,

and bolster local and national government capacity to meetthe needs o their peoples, it also addresses regional causes o

instability. State and USAID, along with the Departments

o Deense and Justice, strive to improve border security,

proessionalize militaries and security orces, enhance law

enorcement capacity to combat transnational terrorism

and crime, and prevent the prolieration o weapons o mass

destruction. U.S. assistance to Sri Lanka includes consolidating

a lasting and equitable peace and enabling it to resume the

impressive social and economic development it enjoyed prior

to the start o its 26-year civil war. In Nepal, the United States

continues supporting the development and implementationo a new constitution that respects the basic rights o all o

its citizens and national development policies that overcome

widespread poverty and a weak economy. In the Central

Asian Republics, USAID programs ocus on increasing jobs,

democracy, and ood security. Tis eort relates to the Aghanistan

and Pakistan High Priority Perormance Goal listed on page 8.

Expanding the U.S. Strategic Partnership with India. Te

Secretary reers to India as “…one o a ew key partners world-

wide who will help us shape the 21st century.” Building on a

rm oundation o shared values and common interests, the

USG will increase cooperation in bilateral, regional, and global

spheres. U.S. assistance programs ocus on trade, health, agri-

culture, education, science and technology, and inrastructure.

Increasing U.S. Engagement with Central Asia. Te vestates o Central Asia have supported U.S. and coalition

eorts in Aghanistan by providing important access and

supply routes. Enhanced U.S. engagement and assistance

create greater opportunities or American business, instill

greater respect or human rights, and establish sustainable

solutions to natural resource challenges.

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MaldivesNepalPakistan

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WESTERN HEMISPHERE REgION

Countries in the Western Hemisphere must work together to

advance prosperity and security throughout the region. In

FY 2009, the United States reafrmed its commitment to

ullling its responsibility to nations in the hemisphere as an

equal partner, recognizing that it must stimulate growth in

order to create prosperity and provide assistance to those that

are most vulnerable.

Promoting Common Prosperity. In FY 2009, the globaleconomic crisis seriously aected the region, threatening

recent progress in poverty reduction. o mitigate its

signicant impact on the availability o credit or the small

and medium businesses that provide most jobs in the region,

the USG initiated a new Micronance Growth Fund that

provided stable sources o nance and rebuilt lending capacity.

Continuing eorts to make the benets o market-based

economies ow to all, the United States re-launched its

Pathways to Prosperity in the Americas program to reinorce

labor and environmental standards, improve economic

competitiveness, bolster small and medium businesses,and promote trade growth.

Advancing Social Inclusion. In FY 2009, the region

continued to have the largest gap in the world between rich

and poor. Te United States is committed to supporting the

newly launched Inter-American Social Protection Network

to promote the exchange o social protection best practices

among hemispheric countries and help reduce social inequality

and poverty. Te United States also proposed a pilot program

to orm education partnerships with certain countries in the

hemisphere and ocus on at-risk youth.

Improving Common Security. Organized crime, terrorism,

and trafcking in people and illicit goods continued to

be the principal hemispheric security threat in FY 2009.

Te United States continued work to break the power o

criminal organizations in the region through the enduring

support o the Merida Initiative, a new paradigm or security

cooperation with Mexico and Central America. Te United

States also continued to make advances in eorts to combatillicit narcotics cultivation and trafcking; the Andean rade

Promotion and Eradication Act contributed signicantly to

export diversication in the Andean region, and strengthened

its legitimate economies as alternatives to narcotics production.

Finally, through the Security and Prosperity Partnership, the

USG continued to improve security with Canada and Mexico

by coordinating border policies, cooperating on regulations,

and preparing or potential pandemic situations.

Protecting the Democratic State. In FY 2009, the United

States continued its commitment to ostering democraticgovernance and protecting undamental rights by working

multilaterally through the Organization o American States and

other institutions in the Inter-American system. While seeking

a new beginning with Cuba, the United States continued to

urge the Cuban Government to begin a peaceul transition to

democracy. Tis eort relates to the Democracy, Good Governance, and

Human Rights High Priority Perormance Goal listed on page 8.

Nurturing Democratic Institutions and Responsive Gover-

nance. Across the region, Te United States works to strength-

en the rule o law, respect or human rights, independent

media, civil societies that advocate eectively or citizens’ rights

and participation, air and open political processes, and strong

government institutions that deliver basic services like health

and education. Te USG continues supporting democratic

reorm and governance in Bangladesh and in Central Asia.

Tis eort relates to the Democracy, Good Governance, and Human Rights

High Priority Perormance Goal listed on page 8.

L I C L E

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BELLI GSH USE

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Cayman IslandsChileColombiaCosta RicaCubaDominicaDominican RepublicEcuadorEl SalvadorGrenada

GuatemalaGuyanaHaitiHonduras JamaicaMexicoNetherlands AntillesNicaraguaPanamaParaguay

PeruSt. Kitts and NevisSt. LuciaSt. Vincent and theGrenadinesSurinameTrinidad and TobagoUruguayVenezuela






INTERNATIONAL ORgANIzATIONS

Te challenges acing the United States have never been more

multilateral in nature: nonprolieration, disarmament, ood

security, human rights, and climate change. International

organizations, including the United Nations (UN) and the

Millennium Challenge Corporation, are crucial partners in

any eort to address these challenges, and the United States

employs vigorous and constructive interaction with these

organizations to advance U.S. national interests. Multilateral

institutions leverage greater global resources and complementbilateral assistance. Te Administration’s reinvigorated

commitment to multilateral diplomacy and promotion o

more eective, responsive, and accountable international

organizations is best supported through a whole-o-

government approach.

Te United States works with the UN and its many

subordinate and afliated organizations, and supports UN

agencies in humanitarian and development responses around

the world. ogether, both the Department o State and

USAID have been vocal advocates or the management reormsthat are now reshaping how agencies such as the UN Ofce

or the Coordination o Humanitarian Aairs, the UN High

Commissioner or Reugees, the World Food Program, the UN

Children’s Fund (UNICEF), and the Food and Agriculture

Organization coordinate during humanitarian crises.

In the last year, the United States has reinvigorated multilateral

engagement that leads to direct benets or American citizens.

Early results o that eort include:

President Obama’s initiative to strengthen and support■

UN peacekeeping.

Secretary Clinton’s leadership in combating sexual violence■

in armed conict, which resulted in the adoption o

Resolution 1888 in a UN Security Council (UNSC)

meeting chaired by the Secretary.

Adoption o tough UNSC sanctions on North Korea.■

Election o the United States to a seat on the Human■

Rights Council.

Direct involvement in the evaluation o the Paris■

Declaration including election to a seat on the evaluation

management group.

Te re-opening o the rans-Atlantic Development Dialogue■

with the European Union ocused on climate change, ood

security, and the Millennium Development Goals ater a

decade’s hiatus.

Secretary Clinton chairs the UN Security Council Session on Women,

Peace, and Security, New York, September, 2009. AFP Image

Combating Climate Change and Increasing Energy

Security. With nearly 50% o U.S. oil imports coming rom

the hemisphere, the United States proposed the creation o a

new Energy Climate Partnership o the Americas, a voluntary

and exible ramework or advancing energy security and

combating climate change. Te United States also expressed

a commitment to working closely on energy and climate with

Brazil, Canada, and Mexico through the Major Economies

Forum on Energy and Climate. Tis eort relates to the Climate

Change High Priority Perormance Goal listed on page 8.





U.S. gOvERNMENT’S ROLE IN H AITI RELIEF

On January 12, 2010, a magnitude 7.0 earthquake struck

southern Haiti, with an epicenter 10 miles southwest

o Port-au-Prince. On January 13, President Obama named

the USAID the lead Federal agency or earthquake relie and

reconstruction. Te U.S. Government’s joint civilian-military response to assist the Haitian people ollowing the earthquake is

being carried out in coordination with the United Nations, the

international community, and nongovernmental organizations

worldwide. Te Department o State and USAID work as one

to coordinate the overall American humanitarian response,

successully demonstrating the ongoing linkage o diplomacy

and development. Preliminary estimates o the Haitian death

toll ranged rom 150,000 to 200,000, with at least another

200,000 people seriously injured, and one million displaced by

the earthquake. As o April 1, 2010, over $9 billon or relie

had been pledged by the international community.

In support o the Government o Haiti, the United States

ocused its initial eorts on saving lives and lie-sustaining

activities. U.S. assessment teams evaluated public health

requirements, the structural integrity o critical inrastructure,

and longer-term ood and nutrition needs – all with a view to

post-disaster reconstruction. Te Department also coordinated

assistance to American citizens aected by the disaster in Haiti,

and provided inormation on individuals to their relatives in

the United States as it became available. As o April 16, 2010,

USAID had provided more than $574 million in response tothe Haiti earthquake, including support or search and rescue,

health, nutrition, humanitarian coordination and inorma-

tion management, protection, economic recovery and market

systems, and water, sanitation, and hygiene activities, as well as

logistical support and provision o emergency ood aid and relie

supplies. President Obama characterized the American contribu-

tion by saying “…we are moving orward with one o the largest

relie eorts in our history -- to save lives and to deliver relie

that averts an even larger catastrophe. In these difcult hours,

America stands united. We stand

USAID Administrator Rajiv Shah delivers remarks on the situation in Haiti

during a special briefng at the State Department, Washington, January 13,

2010. U.S. SOUTHCOM Commander General Douglas Fraser and State

Department Counselor Cheryl Mills stand behind him. Department o State Image

united with the people o Haiti, who have shown such incredibleresilience, and we will help them to recover and to rebuild.”

On January 25, Secretary Clinton attended a meeting in

Montreal, convened and hosted by Canadian Foreign Minister

Lawrence Cannon to lay the oundation or a reconstruction

donors’ conerence to be held ollowing the completion o a

joint needs assessment. Assisting Haiti to recover rom this

devastation and rebuild or the uture will require many years

o active involvement by the world community. Experts agree

that among the priority reconstruction goals are restoring roads,

scaling up existing community development programs, andaddressing reorestation requirements. Critical to long-term

success will be government capacity building assistance rom all

donors. Eorts in the reconstruction o Haiti cannot just return

to the old status quo, and as World Bank President and ormer

Deputy Secretary o State Robert Zoellick has said, “…we must

emphasize learning rom the past as we rebuild or the uture.”

For urther inormation on the U.S. government’s role in Haiti

relie, visit http://www.state.gov/p/wha/ci/ha/earthquake/index.htm

and http://www.usaid.gov/haiti/ .

Port-au-Prince,Haiti


21



aMerIcan recovery anD reInvestMent act

The American Recovery and Reinvestment Act o 2009 (ARRA)

was signed into law by President Obama on February 17th,

2009. It is an unprecedented eort to jumpstart the economy, create

or save millions o jobs, and make a down payment on addressing

long-neglected challenges so the United States can thrive in the

21st century.

ARRA specifcally identifes fve goals as its purpose:

Preserve and create jobs and promote economic recovery.■

Assist those impacted by the recession.■

Provide investments needed to increase economic efciency■

by spurring technological advances in science and health.

Invest in transportation, environmental protection, and other■

inrastructures that will provide long-term economic benefts.

Stabilize state and local government budgets, in order to■

minimize and avoid reductions in essential services and

counterproductive state and local tax increases.

O the total $787 billion appropriated or ARRA, the Department

received $564 million. The Department will use ARRA unds to create

and save jobs, repair and modernize domestic inrastructure crucial to

the saety o American citizens, and expand consular services oered

to American taxpayers. USAID received $38 million or immediate in-

ormation technology security and upgrades to support mission-critical

operations. Due to Agency IT priorities to maximize job creation with

ARRA unds, USAID determined that the unding should be dedicated

to the GLAAS project. GLAAS will bring increased efciency andaccountability to USAID’s procurement process by implementing a

world-wide, web-based Acquisition and Assistance system.

Construction Projects. A Hard Skills Training Center or Diplomatic

Security ($70 million) will be built within 150 miles o Washington,

DC, and provide a centralized location to support all security-related

training that is currently conducted at 15 locations throughout the

United States. Passport Facilities ($15 million) will und fve new start-

up sites and the renovation and expansion o two existing sites. The

National Foreign Aairs Training Center ($5 million) will expand train-

ing capacity to ensure personnel assigned overseas have the neces-sary language and IT training. Projects include upgrading acility and

grounds, updating orientation signage or the 72-acre campus, and

upgrading inrastructure wiring and public address systems. An enter-

prise Data Center ($120 million) will be established in the western

United States and consolidate all domestic servers into our enterprise

data centers. The program will provide a highly available, scalable,

and redundant data center inrastructure that will substantially reduce

the Department’s risk and provide or uture IT growth.

Inormation Technology Platorm and Cyber Security. Funding

($132 million) will provide or new telephone systems, IT equipment,

mobile communications or emergency situations, and projects to

guard against and track cyber attacks. It will also be used to improve

hardware security and testing, saeguard U.S. citizens’ cyber security,

and expand cyber education.

Global Acquisition and Assistance System. GLAAS project

unding ($38 million) contributes towards employing individuals in

the Washington, DC area, the majority o whom are small business

employees. Recovery Act unding will support procuring the sta and

resources needed to successully implement GLAAS. ARRA unding

provides the ability to retain critical systems development sta to

improve unctionality and to hire much needed system trainers and help

desk support sta. Upon implementation, GLAAS will allow USAID to

increase opportunities targeted to new partners, small businesses, and

local and indigenous organizations in support o the Agency’s mission.

International Boundary and Water Commission (IBWC). These

projects ($220 million) will evaluate and repair portions o the ood

control systems or 495 miles o the upper and lower Rio Grande River

protecting about 3 million U.S. citizens in New Mexico and Texas.

The projects consist o $213 million or construction and repair olevees, $6 million to rehabilitate contaminated soil and groundwater,

and $1 million or other related projects.

Ofce o Inspector General. Funding ($2 million) will provide

oversight o use o ARRA unds and ARRA projects by the Department.

For urther inormation on ARRA, visit http://oig.state.gov/arra/

index.htm and http://www.usaid.gov/recovery .

Three USIBWC engineers, (l to r) John Merino, Gabriel Duran and Rod

Dunlap, inspect the site o the levee rehabilitation fnanced by the ARRA.

USIBWC Image





PerforMance M anageMent

that yields productive and long-lasting organizational reorm.

Perormance management at the Department o State is

entrenched in annual strategic planning and budget processes.

Perormance management is one avenue the Department uses

to build consensus around organizational vision and direction,

support prioritizing investments, acilitate interagency

planning and coordination, and institutionalize a culture

o accountability and continuous improvement.

Tis year, the Department has adopted a new set o criteria

or developing and selecting perormance indicators that

represent its diplomatic, consular and management eorts.

Tis shit to more “outcome-oriented” perormance indicators

has resulted in a largely new set o indicators designed to

provide inormation that is more meaningul to Congress, the

President, and the American public, and more useul internally

in supporting budget, policy, and planning decisions.

USAID

Perormance management represents the commitment o

USAID to increase its accountability by striving to improve

development outcomes. Te Agency ollows a our-part

perormance management process: plan and set goals, collect

Total Number of Indicators – 130

Above target – 34(26%)

On target – 17(13%)

Improved, but target not met – 6

(5%)

Below target – 19(15%)

Summary of Performance Ratings Fiscal Year 20091, 2

Rating not available – 54

(42%)

1 Source: FY 2009 Annual Performance Reports and FY 2011 Annual Performance Plans for State Operations and Foreign Assistance. Performance ratings calculated from performance data provided at the time of publication.

Ratings are not available for indicators that are new or for which current year data are not yet available.

2 Percentages rounded to the nearest whole number.

The Department o State and USAID devote considerable

eort towards the collection and use o data to

improve perormance in support o U.S. diplomatic

and development results. Te Department and USAID

utilize perormance management to measure organizational

eectiveness, strengthen and inorm decision-making, and

improve programs and policies so that they are linked to

specic perormance targets and broader strategic goals. Both

agencies use perormance management best practices to assess

and mitigate risks, benchmark program results, comply withlegislative requirements, and learn where to adjust strategies

in response to perormance successes and shortcomings.

In order to measure the Department o State’s and USAID’s

perormance in FY 2009, agency working groups selected

130 perormance indicators that best show U.S. progress

toward achieving its oreign policy goals. Te working groups

examined each indicator closely to determine whether the

FY 2009 result met a previously determined target and how the

results impact the achievement o State and USAID strategic

goals. A rating was then assigned to each indicator basedon the analysis. Te chart eatured on this page summarizes

FY 2009 ratings or the 130 Department o State and USAID

perormance indicators. Tirty-two illustrative indicators

o the 130 are highlighted in the ollowing section, which is

organized by Strategic Goal and accompanied by an explanation

o each goal and analyses o results achieved in FY 2009. All

130 indicators were published in the agencies’ FY 2009 Annual

Perormance Reports, which were incorporated into the

FY 2011 Congressional Budget Justication.

DEPARTMENT OF STATE

Te relationship between perormance transparency and

agency management practice is clearly maniested through

senior leadership who support and realize the benets o

measuring or organizational results. Te Department practices

an interagency, participatory whole-o-government approach

perforMance HIgHlIgHts


PerforMance hIghlIghts



data and analyze results, use data or decision-making, and

communicate results.

USAID Missions and ofces are responsible or establishing

Perormance Management Plans to measure progress towards

intended objectives. Tey are also responsible or reporting on

key indicators o progress in their annual perormance reports.

At USAID, the tools o assessing, learning, and sharing are

interrelated through the concept o perormance management.

Perormance management is crucial or inorming decisions

on unding, program development, and implementation.

Key to perormance management is an ambitious, optimistic,

and achievable perormance target. USAID ollows a multi-step

process when careully determining its program-level targets by

examining the baseline value beore USG intervention, histori-

cal trends and the level o progress that occurred in the past,

expert judgments rom technical experts in the eld, research

ndings and empirical evidence cited in research, accomplish-

ments o similar programs elsewhere (with similar character-

istics), customer expectations, and what will be accomplished

over a ve-year period with the current scal year budget and

uture unds, and then plans progress rom the baseline.

Similarly, data are only useul or perormance management

i the inormation collected is o high quality. As indicated in

USAID’s Automated Directive System Chapter 203.3.5, (http://

www.usaid.gov/policy/ads/200/203.pd ), all USAID Missions

and ofces are required to conduct data quality assessments

or all perormance data reported to Washington. USAID

has three data source categories: primary data (collected by

USAID or where collection is unded by USAID), partner data

(compiled by USAID implementing partners but collected rom

other sources), and data rom third-party sources (rom other

Government agencies or development organizations). Primary

data undergo rigorous USAID assessments to ensure that it

meets quality requirements. Tird-party data do not go throughthe same USAID quality assessments, but sources are careully

chosen based on the organization’s experience, expertise,

credibility, and use o similar assessments.

PrograM e valUatIon

P

rogram evaluations are essential to implementing and

managing oreign policy and oreign assistance programs

at the Department o State and USAID. Evaluation

results and perormance data are used to inorm programmaticand budget decisions in both Washington and the eld, and

convey the eectiveness o programs to program managers,

Congress, and the public. State/F and USAID provided

intensive training to over 100 participants through

an Evaluation Certicate Course and through a web-based

Monitoring and Evaluation Distance Learning Course,

enhancing capacity in this eld. USAID and F also actively

participated in evaluating the implementation o the Paris

Declaration on Aid Eectiveness, o which the United

States is a signatory. Te number o oreign assistance

evaluations reported by operating units or FY 2009 doubledrom the previous scal year to over 800, and spanned ve

Strategic Goals.

DEPARTMENT OF STATE

Te Department o State recognizes program evaluation as

a means to systematically capture reliable data that allows

the Department to understand more clearly links between

current resources and Department oreign policy and program

impacts. Qualitative and quantitative data are then assessed,

and that assessment better inorms conclusions and decisions

about programs, perormance, and resources.

A robust, coordinated evaluation unction is essential to the

Department’s ability to document program accomplishments,

promote higher levels o perormance, identiy best practices,

assess return on investment, provide evidence or policy

and planning decisions, manage organizational change, and

strengthen accountability to the American people. From an

uSAID PERFoRMANCE MANAGEMENT PRoCESS

PERFORMANCE

MANAGEMENT

Communicate

Results

Collect Data

and Analyze

Results

Plan and

Set Goals

Use Data for

Decision-Making





internal perspective, evaluations help program managers justiy

Department o State program and project resource requests.

For example, Missions and bureaus incorporate program

evaluation as a best practice to determine the impact o U.S.

policies, understand better what is eective in U.S. programs,

and increase accountability to U.S. stakeholders.

Te Department’s evaluation work is supported by legislation

requiring Federal agencies to report on whether programs

achieve stated goals and are cost eective. Evaluation supports

the goal o aligning perormance data with budget requests, so

that resource decisions can be made based on program impact

and results. Te State Department’s goal is to help managers

understand how programs are working and provide them with

tools to do so.

Te Department supports evaluation research, strategies,

and activities through workshops, monthly lecture series,and conerences; working with USAID on joint evaluation

guidelines and denitions; and by asking bureaus to ocus on

program assessments related to the joint strategic ramework.

In FY 2009, State worked with USAID and other evaluation

partners to provide training, raise evaluation’s importance

through a drat policy statement, and collect baseline

evaluation inormation. State Department bureaus reported

on oreign assistance and State operations-unded evaluations

in the Country Operational Plans and State Bureau Strategic

Plans. In addition, the Department hosted an international

evaluation conerence at which Deputy Secretary Jacob Lew

spoke, and Secretary Clinton provided a message about

evaluation’s importance or aecting change in oreign aairs.

Te conerence also served as an exchange o ideas and best

practices through panel discussions with Canadian and

British Government representatives.

USAID

USAID has a track record o more than 40 years in the practice

and leadership o evaluation, leading the development o

the Logical Framework in the 1960s, establishing a Central

Evaluation Ofce in the early 1970s, and creating the Center

or Development Inormation and Evaluation in the 1980s tostore evaluation inormation and best practices. Despite the

slight decline in practice, evaluation remains a valuable tool in

USAID’s eorts to improve development eectiveness based

on empirical knowledge o what works and what does not.

USAID is committed to reenergizing its existing capacities and

developing new ones in keeping with accepted best practices

and new technologies.

During FY 2009, USAID took a number o steps to strengthen

evaluation and re-establish its leadership both within the

Federal Government and across the international developmentcommunity. Tis included re-establishing USAID’s central

evaluation unit charged with providing Agency-wide oversight,

leadership, and coordination in assessing program perormance

and impact; and reafrming Agency evaluation requirements.

In FY 2009, USAID established a new evaluation commu-

nity o interest, the Evaluation Interest Group, with more

than 125 members, monthly meetings, and a lively internet

presence through a redesigned USAID evaluation website,

EvalWeb (http://www.usaid.gov/policy/evalweb/ ). ogether with

the Department, USAID established a Foreign Aairs Evalu-ation Working Group that meets biweekly and also includes

representation rom the Millennium Challenge Corporation

and the Ofce o Global AIDS Coordinator.

Just as importantly, USAID reasserted its global leadership

in evaluation and actively engaged in a variety o inter-

agency, national, and international evaluation orums. Tis

included participating actively in the Organization or

Economic Cooperation and Development/Development

Assistance Committee (OECD/DAC) Evaluation Network,

organizing and moderating a highly successul Advisory Committee on Foreign Voluntary Assistance Workshop on

strengthening evaluation, and serving on OMB’s Evaluation

Experts and Evaluation Working Groups. During FY 2009,

USAID also played key roles in several collaborative, multi-

donor evaluations, including the OECD/DAC-led Paris

Declaration Evaluation (Phase wo) and the Dutch-led

Sudan Humanitarian Assistance Evaluation.“Assessing Achievement” – Department’s second annual evaluation

conerence – June 2009. Department o State Image





In FY 2009, the Department o State and USAID increased analytical rigor in perormance planning by ocusing on outcome-oriented perormance measures and resources at the strategic priority level. Below is a discussion o selected priorities or

the Department and USAID’s seven Strategic Goals: Achieving Peace and Security, Governing Justly and Democratically,

Investing in People, Promoting Economic Growth and Prosperity, Providing Humanitarian Assistance, Promoting International

Understanding, and Strengthening Consular and Management Capabilities.

strategIc goal 1:

achIevIng Peace

anD secUrIty

Preserve international peace by preventing regional confictsand transnational crime, combating terrorism and weaponso mass destruction, and supporting homeland security and security cooperation.

I. PUBLIC BENEFIT

Te Department o State and USAID support a national

security strategy to enhance and inuence peace and security or

the United States and the world community. Peacekeeping and

security operations require sound policies, concerted U.S. eort,and international cooperation. Te Department o State and

USAID respond to direct threats to achieving peace and security

through mitigation in the ollowing priority areas: preventing

the spread and use o nuclear weapons through bilateral and

multilateral arms control eorts, combating weapons o mass

destruction, countering terrorism, ghting transnational

crime, emphasizing stabilization operation activities and

security sector reorms, supporting counternarcotics activities,

sponsoring conict mitigation and reconciliation, and ensuring

homeland security.

II. SUMMARy OF PERFORMANCE AND RESOURCES

O the 29 indicators within this Strategic Goal, 12 met or

exceeded targets, and nine were below target. Ratings are

not available or eight indicators that are either new or or

which data are not yet available. Te Department o State

and USAID allocated $14.1 billion toward this Strategic Goal

in FY 2009, which is 29% o the total State-USAID budget

Secretary Clinton meets with Russian Foreign Minister Sergei Lavrov in

Moscow. AFP Image

CounterterrorismCombating Weapons of MassDestruction and DestabilizingConventional Weapons

Security Cooperation andSecurity Sector Reform

Conflict Prevention, Mitigation,and Response

Transnational Crime

Counternarcotics

Homeland Security

Strategic Priorities

($ in millions)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

FY 2009 Budget Resources for Strategic Goal 1

TOTAL – $14,111

$665

$670

$7,304

$3,796

$150$1,349$178



Above target – 6

(21%)



(7%)


FY 2009 Results Achieved for Strategic Goal 11

Rating not

available – 8(28%)

strategIc goals and results


strategIc goals anD resUlts



supporting all strategic goals. A more detailed discussion o the

priorities under this Strategic Goal and USG perormance or

six illustrative indicators is provided in the ollowing section.

Key Selected Achievements

rained over 92,000 people in Conict Mitigation/■

Resolution skills—with Haiti, Indonesia, Kenya, Nepal,

Uganda, and the USAID Bureau or Democracy, Conict,

and Humanitarian Assistance reporting better than

expected results.

Resumed negotiations with Russia to replace the expired■

Strategic Arms Reduction reaty (SAR) with an

agreement to reduce and limit strategic oensive arms

to levels lower than those in the Moscow reaty, while

including eective verication measures drawn rom SAR.

Produced 93,777 hectares o alternative crops in Colombia■

exceeding target by 28,777 hectares.

Held rst round o the United States-China Strategic and■

Economic Dialogue, engaging China on regional security

concerns, nonprolieration, and military-to-military relations.

III. SELECTED STRATEgIC PRIORITIES AND ANALySES

COUNTERTERRORISM: Prevent terrorist attacks against the United

States and its allies and riends, and strengthen alliances and other

international arrangement to deeat global terrorism. Analysis: errorism is the greatest challenge to U.S. national

security. Combating it will continue to be the ocus o develop-

ment, diplomatic, and deense eorts as long as the proponents

o violent extremist ideologies nd sae havens and support in

unstable and ailing states. Te United States aims to expand

oreign partnerships and to build global capabilities to prevent

terrorists rom acquiring or using resources or terrorism.

Te Department o State supports counterterrorism eorts by

working with oreign governments to establish Financial Intel-

ligence Units (FIUs) that meet rigorous standards published

by the non-prot Egmont Group. Governments that establish

FIUs are more capable o analyzing and disclosing nancial

inormation concerning suspected criminal activities and poten-

tial nancing o terrorist networks. Te establishment o an

FIU is also an indication that a oreign government is increas-

ingly willing to share counterterrorism inormation and pass

antiterrorism nance legislation. Te indicator highlighted here

shows that the number o additional countries establishing FIUs

has increased slightly according to preliminary results.

Perfrmance Indicatr: Number of Total NEA Countries withFinancial Intelligence Units that Meet the Standards of the Egmont Group

0

5

10

15

FY 2011FY 2010FY 20091FY 2008FY 2007

Number of countries

Target Result

7 7

8

1112 13

2007-2011 Performance Trends 2009Rating

Data availablemid- to late

2010

Impact(s): The preliminary result puts the indicator on track or meetingthe FY 2009 target. A greater number o countries willing to sharecounterterrorism inormation has a positive impact on U.S. national security.

1 FY 2009 result is preliminary.

SECURITY COOPERATION AND SECURITY SECTOR REFORM:

Establish, maintain, and, where appropriate, expand close,

strong, and eective U.S. security ties with allies, riends,and regional organizations.

Analysis: Te United States supports capacity-building in

oreign military partners through the provision o training

and equipment. Te United States will increase the number

o oreign military personnel trained in the United States by

continuing relationships across Europe, the Near East, South

and Central Asia, East Asia and the Pacic, and throughout

the Western Hemisphere. Overall results or FY 2009 were

stronger than expected due to larger than anticipated numbers

o personnel able to participate in U.S. training.

Perfrmance Indicatr: Number o Personnel (Foreign Military)Trained in the U.S. Who are at National Leadership Levels

0

1,000

2,000

FY 2011FY 2010FY 2009FY 2008FY 2007

Number of personnel

Target Result

958497

1,549

1,695 1,648

2007-2011 Performance Trends

1,053

2009Rating

Above target

Impact(s): Foreign military training programs unded and carried out by the U.S.increase capacity and skills in host countries, and strengthen their ability to

enorce peace and security.

CONFLICT PREVENTION, MITIGATION, AND RESPONSE: Support

the prevention, containment or mitigation, and resolution o

existing or emergent regional conicts, as well as post-conict

peace, reconciliation, and justice processes.

Analysis: U.S.-supported activities improve the capacity o

citizens, both to better mitigate conict, and to be more eec-

tive in implementing and managing peace processes. Trough





training and technical assistance, U.S. programs strengthened

local capacity to resolve disputes at the lowest administrative

level. raining ocused on actors that underpin conicts such

as land disagreements, including disputes involving claims

by women and indigenous groups. Eorts were also made to

involve young people in tolerance, peace, and reconciliation

programs. For example, in Nepal, a nine-month youth literacy program emphasizing conict mitigation and peace building

skills attracted 30,381 participants, o which 78% were emale.

Country program results like these enabled the U.S. to greatly

exceed its overall training target.

Perfrmance Indicatr: Number o People Trained in Conict Mitigation/Resolution Skills with U.S. Government Assistance

0

50,000

100,000

FY 2011FY 2010FY 2009FY 2008FY 2007

Number of people

Target Result

17,965 12,578

92,60162,704 62,340


30,739

2009Rating

Above target

Impact(s): The results or this indicator were higher than projected, in partbecause three additional countries submitted results that were not includedwhen the target was set. U.S. assistance ocuses on bringing people rom dier-ent ethnic, religious, and political backgrounds together in order to have a long-term impact on improving relationships among communities, nongovernmentalorganizations, and governments at various levels.

Analysis: A signicant proportion o activities in Conict

Prevention is concentrated in peacekeeping operations in Arica

and Near East Asia. Peacekeeping ratings in Arica declined

in FY 2009, likely reecting the increasingly difcult security,political, and economic environment in many parts o Arica.

Ratings in Near East Asia, on the other hand, have remained

above target.

Perfrmance Indicatr: Average Rating Denoting Degree to which UN Peacekeeping Missions in Arica Funded through the

Contributions or International Peacekeeping Activities Account (CIPA) Achieve Preestablished U.S. Government Objectives

1

2

3

FY 2011FY 2010FY 2009FY 2008FY 2007

Target Result

1.832.37 2.3

2.5 2.5 2.5

2007-2011 Performance TrendsRating

2009Rating

Below target

Impact(s): While the Department still considers the FY 2009 result positive, thenegative trend shows that these post-confict countries in Arica may risk los-ing ground in terms o peace, security, and reconstruction unless changes aremade by the host country in coordination with the U.S. Government and UN.

Steps to Improve: The United States will act to reduce threats throughadoption o resolutions and by working to ensure eective peacekeepingmissions in ways that reinorce U.S. Government objectives.

Perfrmance Indicatr: Average Rating Denoting Degree to which UN Peacekeeping Missions in Near East Asia Funded through

the Contributions or International Peacekeeping Activities Account (CIPA) Achieve Preestablished U.S. Government Objectives

1

2

3

4

FY 2011FY 2010FY 2009FY 2008FY 2007

Target Result

2.5

2.53.0 3.0

2.5 2.5

2007-2011 Performance TrendsRating

2009Rating

Above target

Impact(s): The FY 2009 result is encouraging as it shows improved peace, secu-rity, and reconstruction in post-confict Near Eastern Asian countries.

COUNTERNARCOTICS: Disrupt and reduce international drug

tracking by cooperating internationally to set and implement anti-

drug standards, share related fnancial and political burdens, close

o criminal sae havens, and build and strengthen justice systems.

Analysis: Alternative crop development is playing an impor-tant role in countering the illicit drug trade and creating jobs

in Latin America. Te number o hectares o alternative crops

under cultivation has a direct relationship to job creation and

income levels. In Colombia, the United States is supporting

comprehensive training, technical assistance, and co-nancing

o municipal inrastructure projects. Te program also provides

assistance to build small businesses, including agribusinesses, to

enhance competitiveness in local, regional, and global markets.

Similar USAID programs are being carried out in Ecuador,

Bolivia, and Peru.

U.S. programs reported overall better than expected results in

FY 2009. For example, the U.S. supported the production o

93,777 hectares o alternative crops in Colombia exceeding

the FY 2009 target by 28,777 hectares. In Peru, the program

generated $16.5 million in sales and created 10,629 jobs, 18%

o which went to women.

Perfrmance Indicatr: Hectares o Alternative Crops Targetedby U.S. Government Programs under Cultivation

0

100,000

200,000300,000

FY 2011FY 2010FY 2009FY 2008FY 2007

Hectares

Target Result

85,110

229,996 201,989109,457

166,100


110,615

2009Rating

Above target

Impact(s): While the target or this indicator was exceeded, the trend isdownward rom FY 2008. This refects a shit to working in a more remoteand impoverished part o Colombia and challenges in Aghanistan. In SouthAmerica, the overall increasing trend in hectares cultivated has a positiveimpact on job creation and increased earnings rom exports o crops whichcommanded higher prices in international markets in FY 2009.





Today, out o a total world population o 6.7 billion, over

1 billion people suer rom chronic hunger and malnutrition.

By 2050, the world population is projected to increase to over

9 billion people. At the G8 Summit in July 2009, the United

States and other nations agreed to commit $20 billion over the

next three years to address the challenge o simultaneously liting

1 billion people out o poverty while increasing ood production

by an estimated 70% by 2050 to meet the needs o a larger and

wealthier population. As part o this commitment, President Obama

announced his intention to provide at least $3.5 billion over the

next three years (FY 2010 to 2012) as the U.S. contribution. Toulfll the President’s commitment, the United States is launching

a Government-wide response to global hunger that will include

assistance or agricultural development and nutrition provided by

USAID, and contributions to the proposed World Bank Global

Agriculture and Food Security Program. The core o this new eort

will be country-led partnerships and investments in market-driven

agriculture to provide reliable access to nutritious ood and raise

the incomes o the rural poor. USAID supports eorts to increase

ood security as part o the U.S. Government-wide response to

global hunger.

The same fve principles that underpin Rwanda’s progress toward

achieving national ood security are endorsed in the L’Aquila Joint

Statement on Food Security. Building on the momentum o the

L’Aquila Summit, the Department o State has established the Global

Hunger and Food Security Initiative, setting the fve principles o the

fooD secUrIty

Two armers work on USAID’s Model Rice Farm in northern Nigeria.

Jide Adeniyi-Jones Image

L’Aquila Joint Statement as the oundation or this eort. Through

this Initiative, the U.S. Government will invest heavily in solutions

throughout the agricultural supply chain and will seek to reduce

under-nutrition. The U.S. Government’s priorities will also include

enhancing the eectiveness o American emergency ood aid to

complement long-term ood security goals and empowering women,

who constitute the majority o the world’s armers.

USAID invests in improving ood security in some o the most

vulnerable countries in the world. It builds agricultural productivity

through research and technology development; increases accessto fnance, inputs, markets, and trade; and seeks opportunities to

help small armers both mitigate and adapt to climate change,

which otherwise threatens to urther exacerbate ood insecurity.

Increasing opportunities or smallholder armers, especially women,

and other very poor people is a priority. USAID works closely with

host governments and a variety o partners including other donors,

oundations, universities, and or-proft frms to increase ood

security in developing countries. For urther inormation on ood

security, visit http://www.state.gov/s/globaloodsecurity/index.htm

and http://www.usaid.gov/our_work/agriculture/ood_security.htm.

“o the people o poor nations, we

pledge to work alongside you to make

your arms ourish and let clean

waters ow; to nourish starved bodies and eed hungry minds.”

—President Obama’s inaugural address,

January 20, 2009





strategIc goal 2:

governIng JUstly anD DeMocratIcally

Advance the growth o democracy and good governance, including civil society, the rule o law,respect or human rights, political competition, and religious reedom.

I. PUBLIC BENEFIT

Just and democratic governance is important to the U.S.

Government and the American public or three interrelated

reasons: as a matter o principle, as a contribution to

U.S. national security, and as a cornerstone o a broader

development agenda. Governments that respect human rights,

respond to the needs o their people, and govern by rule o law

are more likely to conduct themselves responsibly toward other

nations. Eective and accountable democratic states are also

best able to promote broad-based and sustainable prosperity.

Te goal o the U.S. Government is thereore to promote

reedom and strengthen eective democracies by assisting

countries to move along a continuum toward democratic

consolidation. Within this strategic goal, there are our strategic

program areas: rule-o-law and human rights, good governance,

political competition and consensus-building, and civil society.


O the 19 indicators within this Strategic Goal, three met orexceeded targets and our were below target. Ratings are not

available or 12 indicators that are either new or or which data

are not yet available. Te Department o State and USAID allo-

cated $3.4 billion toward this Strategic Goal in FY 2009, which

is seven percent o the total State-USAID budget supporting all

strategic goals. A more detailed discussion o the priorities under

this Strategic Goal and U.S. Government perormance or ve

illustrative indicators is provided in the ollowing section.


Te Department supports the work o more than 130■

nongovernmental organizations with democracy and

human rights oreign assistance programs. Te majority

o these programs – more than 70% – met or exceeded

their program goals.

Responding to unanticipated demand, the Department■

trained 54,835 justice sector personnel worldwide with

U.S. assistance.

U.S. oreign assistance programs exceeded the target or■

U.S. assisted political parties working to increase the

number o candidates and members who are women,

youth, and rom marginalized groups.

The new virtual courtrooms allow justice to be imparted in Colombia’s

most remote areas. FIU/Carlos E. Vargas Camacho Image

Rule of Law and Human Rights

Good Governance

Political Competition and

Consensus-BuildingCivil Society


($ in millions)

$0

$1,000

$2,000

$3,000

$4,000


TOTAL – $3,421

$1,114

$1,220$515

$572




(63%)


(5%)








RULE OF LAW AND HUMAN RIGHTS: Advance and protect human

and individual rights, and promote societies where the state and

its citizens are accountable to laws that are publicly promulgated,

equally enorced, and independently adjudicated, consistent with

international norms and standards.

Analysis: Improved court case management is one o the key

activities pursued by U.S. Government programs within the

area o rule o law and human rights. Tis representative

indicator tracks improved court case management as reported

by 27 countries receiving U.S. assistance. Te FY 2009 target

or the number o USG-assisted courts with improved case

management was not met, due mainly to delays in some

countries in establishing a case management process and in

others in expanding the number o courts using a piloted

process. In Guatemala, or example, the Supreme Courtdelayed the USAID-supported rial Court Model, leaving

little time to expand implementation o the model outside

o Guatemala City as originally planned.

Perfrmance Indicatr: Number o U.S. Assisted Courts with Improved Management

0

100

200

300

400

FY 2011FY 2010FY 2009FY 2008FY 2007

Number of courts

Target Result

350 351 337220

109


375

2009Rating

Below target

Impact(s): Improved case management leads to a more eective justice systemby decreasing case backlog and case disposition time, reducing administrativeburdens on judges, increasing transparency o judicial procedures, andimproving compliance with procedural law.

Steps to Improve: Lower targets or FY 2010 and FY 2011 refect thecompletion o some country programs and changes in programming toocus on other elements o rule o law in other countries.

Analysis: In addition to monitoring shorter-term activities or

more immediate impact, the United States also tracks longer

term trends, such as the percent o countries with improvedcivil liberties ratings as reported by Freedom House, to assist

in planning and designing uture eorts, as well as to adjust

ongoing programs. Combating corruption, strengthening

democracy through civil society organizations, and encouraging

nations to be democratic and responsible members o the world

community are key long-term priorities or the Department

and USAID. FY 2009 results or this indicator will be available

in mid- to late 2010, but FY 2007 and 2008 results show

positive trends in civil liberties in non-democratic countries

and countries in transition to a ull democracy. Te percentage

o countries showing improved civil liberties ratings increased

to 12% in FY 2008, rom 4% in FY 2007.

Perfrmance Indicatr: Progress in Human Rights as Measured

by Total Percentage o Non-democratic Countries and CountriesUndergoing Democratic Transitions that Improved by at Least OnePoint rom the Prior Year According to Civil Liberty Dimension

o Freedom House’s Freedom in the World Ratings

0%

5%

10%

15%

20%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

4.1%

11.5% 12.5%15.0%


10.0%

2009Rating


2010

Impact(s): Rating and result not available to determine impact.

GOOD GOVERNANCE: Promote democratic institutions that are

eective, responsible, sustainable, accountable to the people, and

include checks and balances.

Analysis: Constitutional order, legal rameworks, and judicial

independence constitute the oundation or a well-unctioning

society, but they remain hollow unless the government has the

capacity to apply these tools appropriately. Activities include

support avenues or public participation and oversight and or

substantive separation o powers through institutional checks

and balances. ransparency and integrity are also vital to govern-

ment eectiveness and political stability. One o the long-termmeasures used by the United States to track the eectiveness

o its eorts to improve good governance is the percentage o

countries with improved governance ratings. According to the

World Bank the percentage o countries with improved gover-

nance ratings jumped to 10% in FY 2008 rom 7% in FY 2007.

FY 2009 results or this indicator are expected in mid-2010.

Perfrmance Indicatr: Progress on Implementing GoodGovernance Reforms as Measured by the Percentage of Non-

democratic Countries and Countries Undergoing Democratic Transitionsthat Improved by at Least 0.1 Points from the Prior Year According to

Average Ratings from the World Bank Governance Indicators

0%

5%

10%

15%

20%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

6.5%10.2% 12.0%

15.0%

2007-2011 Performance Trends 2009Rating


2010

Impact(s): Rating and result not available to determine impact.





POLITICAL COMPETITION AND CONSENSUS-BUILDING:

Encourage the development o transparent and inclusive electoral

and democratic, responsive and eective political parties.

Analysis: Te number o domestic election observers trained

with U.S. Government assistance is tracked as one component

o promoting ree and air elections. Te target and results orpersons trained or deployment as observers beore or during

national elections are dependent on the number o elections

scheduled in a given year. In FY 2009, U.S. assistance programs

exceeded the target despite the postponement or cancellation o

several elections. In those countries where elections were held,

the actual numbers o people trained were requently double the

anticipated target. For example, in Ecuador, the complexity o

the election process necessitated a large increase in the number

o domestic observers trained, and the Mission obtained

supplemental unding or the program.

Perfrmance Indicatr: Number o Domestic Election ObserversTrained with U.S. Government Assistance

0

50,000

100,000

150,000

FY 2011FY 2010FY 2009FY 2008FY 2007

Number Trained

Target Result

53,25824,629

128,705

54,933


48,686

24,733

2009Rating

Above target

Impact(s): Free and air elections are crucial because open and competitivepolitical processes ensure that citizens have a voice in the regular andpeaceul transer o power between governments.

CIVIL SOCIETY: Strengthen democratic political culture and

citizen engagement by supporting the means through which

citizens can reely organize, advocate, and communicate with

members o their own and other governments, international

bodies, and other elements o civil society.

Analysis: In FY 2009, U.S. assistance programs improved

their perormance over FY 2008, but did not meet the target

or the number o U.S. Government-assisted civil society

organizations (CSOs) that engaged in advocacy and watchdog

unctions. Some country-level targets were not met due todelays in program start-up and shits by CSOs rom advocacy

to humanitarian assistance. In countries where the targets were

exceeded, it was oten due to increased advocacy at the local

level or on a particular issue. For example, results exceeded the

target due to orest land advocacy eorts in Cambodia, and

due to an expanded constituency or a Freedom o Inormation

Bill in Nigeria.

Perfrmance Indicatr: Number o U.S. Government-AssistedCivil Society Organizations that Engage in Advocacy and

Watchdog Functions

0500

1,0001,5002,000

FY 2011FY 2010FY 2009FY 2008FY 2007

Number

Target Result

1,039

1,315

889559


1,395

1,469

2009Rating

Improved,but targetnot met

Impact(s): The ability o CSOs to conduct advocacy and watchdog eortsincreases the level o transparency and accountability o host countrygovernment. Training and technical assistance are essential to improving theabilities and eectiveness o these organizations to infuence governmentpolicy. By monitoring the number o organizations assisted, the USG can gaugethe eectiveness o its eorts to improve CSO ability to aect the level o involvement o the public in decisions made by their governments.

Steps to Improve: Targets or FY 2010 and FY 2011 have been adjusted torefect changes in civil society programming ocus, the closure o someprograms, and anticipated delays in unding.

afghanIstan anD

P akIstan

The United States has made a long-term commitment to

help Aghanistan rebuild itsel ater years o war. The

insurgency in Aghanistan and parts o Pakistan poses a

undamental threat to U.S. strategic interests. Disrupting,

dismantling, and eliminating al-Qaeda sae havens in

Aghanistan and Pakistan are a top oreign policy priority.The Administration’s strategy to achieve this goal in

Aghanistan is to promote a more capable, accountable,

and eective Aghan Government that serves its people

by generating economic opportunities, and can unction

with limited international support. Through diplomatic

and development eorts, the United States supports the

Aghan Government in its eorts to establish a ramework

or a vibrant civil society, one that emphasizes democratic

principles through the rule o law and creates accountable

and transparent orms o government. In Pakistan, the strategy

is to stabilize the government through macroeconomic reorms

and private sector growth to lay the oundations or long-term

economic stability and sustainable growth. Pakistan must

also be convinced to systematically conront extremist threats

by urther developing its security capabilities. Both State and

USAID are working together to strengthen each host country

capacity to provide services to its citizens eectively and

enhance the long-term sustainability o development eorts.





strategIc goal 3:

InvestIng In PeoPle Improve health, education, and other social services to help nations create sustainable improvementsin the wellbeing and productivity o their citizens.

I. PUBLIC BENEFIT

Lack o education and training, poor health and disease,

high levels o unintended pregnancy, and lack o services,

particularly or vulnerable populations, are important root

causes o the problems aced by U.S. partners in development

assistance. Tese problems destroy lives and destabilize

countries. Te U.S. approach or the Investing in People

Strategic Goal is to help partner nations achieve sustainable

improvements in the wellbeing and productivity o their

citizens, and build sustainable capacity to provide services that

meet the people’s needs in three priority program areas: health,

education, and social services and protection or especially

vulnerable populations. Tese programs also seek to improve

the lives o individuals by increasing their ability to contribute

to economic development and participate in democratic

decision-making, and mitigating the root causes o poverty

and conict.


O the 17 indicators within this Strategic Goal, 13 met

or exceeded targets, and one was not met. Ratings are not

available or three indicators that are either new or or which

data are not yet available. Te Department o State and

USAID allocated $10.7 billion toward this Strategic Goal


supporting all strategic goals. A more detailed discussion o

the priorities under this Strategic Goal and U.S. Government

perormance or seven illustrative indicators is provided in

the ollowing section.


Supported HIV/AIDS treatment or approximately ■

2.4 million people.

Supported HIV counseling and testing or nearly ■

29 million people.

At the Sauyemwa Primary School in Caprivi Region, Namibia, students

arrive to class in uniorms sewn by volunteer tailors. A small grant

program provides money or the materials the tailors use to create

uniorms specifcally or students who have been orphaned. AED Image

Health

Education

Social Services andProtection for Especially

Vulnerable Populations


($ in millions)

$0

$6,000

$12,000


TOTAL – $10,687

$8,485

$1,177

$1,025





On target – 1(6%)


(18%)

Improved but target not met – 1

(6%)

Te President’s Malaria Initiative protected 30 million■

people against malaria using either insecticide-treated

bed nets or indoor spraying methods.

Increased access to improved drinking water supplies■

or 7.8 million people, 2.9 million more than targeted.






HEALTH: Improve global health, including child, maternal, and

reproductive health; prevent and treat inectious diseases; and

increase access to better drinking water and sanitation services.

Critical interventions work to combat HIV/AIDS, tuber-culosis, malaria, avian and pandemic inuenza, neglected

tropical diseases, polio, pneumonia, and diarrhea. Within

these program areas, mothers and children are two special

target groups. In addition, U.S. assistance works to strengthen

local capacity to detect and respond to disease outbreaks;

improve delivery o health services, essential drugs, and

commodities; and support advances in health technology.

Te Global Health Initiative (GHI) which the President

announced in May 2009, seeks to improve outcomes across

these elements by adopting a women- and girl-centered

approach, increasing strategic integration and coordina-tion within the U.S. Government and with partner coun-

tries, strengthening and leveraging multilateral institutions,

encouraging country ownership, enhancing sustainability

by strengthening healthy systems, improving metrics and

evaluation, and promoting research and innovation.

HIV/AIDS Analysis: Te bulk o U.S. HIV/AIDS unding

is provided through the President’s Emergency Plan or AIDS

Relie (PEPFAR), which takes a comprehensive approach to

HIV/AIDS prevention, treatment, and care in developing

countries. Tis program works in close cooperation withhost country governments and national and international

partners. Te indicator on the number o people receiving

HIV/AIDS treatment measures the reach o PEPFAR and

highlights which countries are acing challenges in scaling

up their programs and which may have best practices that

should be replicated elsewhere. PEPFAR-supported treatment

has helped to save and or extend millions o lives as well as

avoid the orphaning o hundreds o thousands o children

whose parents have HIV/AIDS. Because o the rapid scale-

up o the programs, the United States directly supported

treatment or some 2.4 million people living with HIV inFY 2009, exceeding the target by over 200,000. argets

or FY 2010 and FY 2011 will be available in mid- to

late 2010, ollowing the headquarters review o Country

Operational Plans.

Perfrmance Indicatr: Number o People ReceivingHIV/AIDS Treatment in the 15 Focus Countries

0M

1M

2M

3M

FY 2011FY 2010FY 2009FY 2008FY 2007

Number of people (in millions)

Target Result

1.3M

2.0M

TBD1 TBD1


2.5M

2.2M

2009Rating

Above target

Impact(s): Antiretroviral (ARV) treatment provides direct therapeutic benetsor the individuals who receive treatment by: increasing the length and qualityo their lives, enabling many individuals to resume normal daily activities andproviding care or their amilies. ARVs reduce viral load in patients on therapy,and lower viral loads are associated with decreased rates o transmission.PEPFAR-supported treatment has helped to save and extend millions o livesas well as avoid the orphaning o hundreds o thousands o children whoseparents are inected with HIV/AIDS.

1 Since the headquarters review o the Country Operational Plans, thedocument that provides the targets, is ongoing, FY 2010 and FY 2011targets will not be available until mid- to late 2010.

Tuberculosis Analysis: wenty-two developing countries

account or 80% o the world’s tuberculosis (B) cases; the

disease kills more than 1.1 million people each year in those

countries. Furthermore, B is a serious and common co-

inection or HIV-inected individuals. Te ocus o USAID’s

B program is to combat multi-drug-resistant B and

extremely drug-resistant B, and to prevent drug resistance

by improving the quality o basic B services.

One o the perormance indicators or B is the tuberculosis

treatment success rate (BS), or the proportion o patients who complete their entire course o treatment. Because B

is transmitted in the air when an inected person coughs

or sneezes, eective treatment o persons with the disease

is critical to interrupting the transmission o B. racking

progress toward meeting or exceeding the BS target o 85%

is a key indicator as to how eectively the United States is

ghting this disease. BS has improved steadily in high-

burden countries in Arica, Asia, and the Middle East, and

several countries receiving U.S. support have met or exceeded

the threshold or this indicator. Te United States exceeded

its FY 2009 target because the impact o a $70 millionFY 2008 unding increase or USAID led to the scaling up

o B activities in priority countries. Progress will be slower

in countries like Russia due to high rates o HIV inection,

drug resistance, and inadequate health services.





Perfrmance Indicatr: Average Tuberculosis Treatment Success Rate (TBS) in USAID Priority Countries

70%

80%

90%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

N/A

80%

83% 84%


82%

81%

2009Rating

Above target

Impact(s): Twenty-two developing countries account or 80% o the world’sTB cases; the disease kills more than 1.1 million people each year in thosecountries. Furthermore, TB is a serious and common co-inection or HIV-inected individuals. Because TB is transmitted in the air when an inectedperson coughs or sneezes, eective treatment o persons with the diseaseis critical to interrupting the transmission o TB. The results achieved areexpressed in terms o national trends attributable to US resources leveragedwith unds rom other donors, in particular the Global Fund to Fight AIDS, TB,and Malaria (GFATM).

Malaria Analysis: In June 2005, the President’s Malaria

Initiative (PMI) was launched, pledging to increase U.S.unding by more than $1.2 billion over ve years to reduce

deaths rom malaria by 50% in 15 Arican countries. Te

increased unding enables the United States to accelerate

expansion o the malaria initiative program to achieve the

target. Te two critical emphases o the malaria initiative are

insecticide-treated mosquito nets (IN) and indoor residual

spraying (IRS), which when used properly are highly eective

in controlling malaria. Tese prevention measures are expected

to contribute to lower prevalence o malaria in countries and,

as a consequence, reductions in morbidity and mortality,

especially among pregnant women and children.

Te number o people protected against malaria with a

prevention measure (IN, IRS, or both) supported by

PMI unds is an indicator o U.S. progress in extending the

prevention measures that are necessary to reduce the number

o malaria deaths in 15 Arican countries by 50%. In FY 2009,

the United States exceeded its target because PMI is now a more

mature program that has strong national commitment rom the

host country and other donors. With this support, PMI has

been able to implement its program more eectively.

Perfrmance Indicatr: Number o People Protected Against Malaria with a Prevention Measure (ITN and/or IRS) in President’s

Malaria Initiative (PMI) Countries

20M

30M

40M

FY 2011FY 2010FY 2009FY 2008FY 2007


Target Result

22.3M25.0M 33.0M

38.0M


30.0M

29.0M

2009Rating

Above target

Impact(s): In conjunction with national malaria programs and partners,PMI is achieving signicant impact. In Zambia and Rwanda, over the pastthree years, there were notable declines in malaria parasite prevalence,a 53% decline in Zambia rom 22% to 10% and prevalence alling below3% in Rwanda. In addition, recent national household surveys have showndramatic reductions in all-cause child mortality in seven countries (Tanzania,Madagascar, Ghana, Zambia, Senegal, Rwanda, and Kenya) ranging rom 19%to 35%. While the declines cannot be credited to malaria interventions alone,the rapid scale up o malaria control intervention measures suggests thatthey have signicantly contributed to the declines.

Maternal and Child Health Analysis: Tis program aims

to increase the availability and use o proven lie-saving

interventions that address the major killers o mothers and

children. Tese interventions include eective maternal and

newborn care, management o obstetric complications, routine

immunization, polio eradication, micronutrients, and improved

maternal, inant, and young child eeding. Maternal and child

health is also a core component o the GHI.

Increasing the requency o deliveries overseen by skilled birth

attendants is more likely to result in prompt recognition o complications, initiation o treatment, and lives saved. Te use

o skilled birth attendants has increased considerably, more than

doubling over the past decade in Nepal, Indonesia, Bangladesh,

and Egypt. An increase in the coverage o attended births is

expected to contribute to lower maternal and child morbidity

and mortality. In FY 2009, U.S. assistance programs exceeded

their target and continued a trend o steady improvement in

the percent o live births attended by skilled birth attendants.





Perfrmance Indicatr: Percentage o Live Births Attended by Skilled Birth Attendants

40%

50%

60%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

45.7% 46.7%48.9%

50.9%


47.9%

47.2%

2009Rating

Above target

Impact(s): Having a skilled attendant at birth is a critical component o eortsto reduce maternal mortality. Most maternal deaths happen during labor anddelivery or within the rst ew days ollowing delivery. Because potentiallyatal complications can occur among women who do not all into any o the traditional high-risk groups, they are dicult to predict and prevent.In many countries, most births occur at home. Increasing the requency o deliveries overseen by skilled birth attendants is more likely to result in promptrecognition o complications, initiation o treatment, and lives saved.

Family Planning and Reproductive Health Analysis: Te

United States’ amily planning and reproductive health (FP/RH)

program aims to expand access to high-quality, voluntary amily

planning and reproductive health inormation and services, in

order to reduce unintended pregnancies and promote healthy

reproductive behaviors. Increased use o modern contraception,

one o three main indicators or this area, translates into ewer

unintended pregnancies and ewer abortions. A strong amily

planning program can be expected to increase the modern con-

traceptive prevalence rate (MCPR) at the country level by one to

two percentage points annually. Te MCPR indicator measures

the percentage o in-union women o reproductive age (15-49)

using, or whose partner is using, a modern method o contra-ception at the time o the survey. In FY 2009, U.S. programs

contributed to nearly a percentage point increase in MCPR in

assisted countries, but ell very slightly short o the target.

Perfrmance Indicatr: Average ModernContraceptive Prevalence Rate

20%

25%

30%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

N/A26.4%

28.3% 29.3%


27.3%

27.4%

2009Rating

Improved,but target

not met

Impact(s): Family planning and reproductive programs contribute to smaller andhealthier amilies, directly contributing to the well-being o women and chil-dren. Ensuring basic access to amily planning could reduce maternal deaths bya third and child deaths by nearly 10%. Increased use o modern contraceptiontranslates into ewer unintended pregnancies and ewer abortions.

Steps to Improve: There is some evidence that MCPR is rising more slowly onaverage than in the past. This is largely due to very slow or no progress in somecountries with large populations (e.g., Nigeria, Uganda, Philippines) whereamily planning is not a political priority. Additional resources in the FY 2010budget will permit program expansion, including eorts to build political willor amily planning and reproductive health programming in these countries.

Water Supply and Sanitation Analysis: Access to a reliable

and economically sustainable water supply is a key component

o a country’s ability to attain health, security and prosperity or

its population. Access is achieved through diverse approaches,

including both direct support or small and large-scale inra-

structure development and indirect support through institu-

tional development, community-based systems, acilitation o private supply o products and services, and nancing to ensure

long-term sustainability and expansion o access.

Te United States tracks the number o new people who

gain access to an improved water source in the reporting

period, such as a household connection, public standpipe,

borehole, protected well or spring, or rainwater collection as

a result o U.S. assistance. Te overall target or FY 2009 was

greatly exceeded due in part to momentum gained rom a

new regional program in Asia. In South Arica, a greater than

anticipated number o water projects were approved by the localgovernment, and Haiti reached more beneciaries due to the

additional resources rom the 2008 hurricane recovery unds.

Perfrmance Indicatr: Number o People in Target Areas with Access to Improved Drinking Water Supply

0M

4M

8M

FY 2011FY 2010FY 2009FY 2008FY 2007


Target Result

2.1M

3.0M

5.5M 5.5M


7.8M

4.9M

2009Rating

Above target

Impact(s): Access to reliable and economically sustainable water supply is akey component o a country’s ability to attain health, security and prosperityor its population.

EDUCATION: Promote the creation and maintenance o eective,

equitable, high-quality educational services and systems, rom the

primary education and literacy program level to strengthening the

institutional capacities o public and private higher educational

institutions.

Analysis: In the basic education sector, the United States

assesses its perormance based on the primary net enrollment

rate (NER) or a sample o countries receiving basic education

unds. Although USAID is certainly not solely responsible

or supporting increases in enrollment rates, there is plausible

attribution to the U.S. Government or this meaningul

perormance indicator. Since 2002, NER have steadily

improved in countries receiving U.S. assistance. Tis trend

is expected to continue with additional unding to help

ministries o education establish and maintain more eective





school systems, provide teacher training, develop and conduct

learning assessments, and collect and use data to assist with

school management decisions, particularly those related to

enrollment and the learning environment. Te rate o increase

will be slower as countries approach 100% enrollment, with the

remaining population the most difcult and expensive to reach.

In FY 2009, the United States met its target o 79% NER.

Perfrmance Indicatr: Primary Net Enrollment Rate or aSample o Countries Receiving Basic Education Funds

70%

80%

90%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

76%78%

80% 81%


79%

79%

2009Rating

On target

Impact(s): High net enrollment rates lead to increases in school completion

rates and thus higher educational attainment within the overall population.Countries with an educated population are more likely to experienceimprovements in health and economic growth.

clIMate change

The world community must work collaboratively to slow,

stop, and reverse greenhouse gas emissions in a way

that promotes sustainable economic growth, increases energy

security, and helps nations deliver greater prosperity or their

people. The U.S. Government addressed this challenge

during FY 2009 through a whole-o-government approach

that combines actions rom reducing U.S. emissions at home,

to developing transormational low-carbon technologies, to

improving observation systems that will help the USG better

understand and address the impacts o climate. Within

the U.S. Government, the State Department led the eort to

reach a global climate change accord at Copenhagen in

December 2009 that captures President Obama’s vision,

working closely with other large emitters such as the EU,

China, Russia, and India in the Major Economies Forum on

Energy and Climate. USAID led bilateral assistance eorts

that promote cleaner and renewable energy technologies,

energy and building efciency, protection o orests that serve

as carbon “sinks,” and assistance to build the resilience o

nations and communities that are highly vulnerable to climate

change. As the international community moves to implement

the Copenhagen Accord, the United States will do its part by

meeting the commitment to reduce emissions at home and to

provide increased fnancial resources or developing countries,

particularly those most vulnerable to climate change and with

the least capacity to respond. For urther inormation on climate

change, visit http://www.state.gov/g/oes/climate/index.htm

and http://www.usaid.gov/our_work/environment/climate/.

USAID supports social and economic transormation and reconciliation

or vulnerable rural women in Rwanda. World Relie Rwanda and Ikirezi Image





For over three decades, the United States has recognized

violence against women as a human rights problem. In

September 2009, the United States led the UN Security Council

in adopting a unanimous resolution to end sexual violence against

women and children in conict situations. As a result, the UN

Secretary General will appoint a Special UN Representative on

Sexual Violence in Armed Conict, and rapidly deploy teams o

experts to armed conicts.

U.S. international programs to combat violence against women

have long been integrated into many o its aid programs:

Global Health.■ PEPFAR – a fve-year, $15 billion global

initiative – dedicates specifc unds to combat gender-based

violence. USAID missions in Ethiopia, Egypt, Kenya, Mali, andGuinea support programs to prevent emale genital mutilation.

Humanitarian Assistance and Reugees.■ U.S. humanitarian

and reugee assistance incorporates programs to prevent

violence against women. The Department o State’s reugee

programs in Pakistan, along with USAID’s global programs

through the Ofce o U.S. Foreign Disaster Assistance and

the Displaced Children and Orphans Fund, contain elements

aimed at protecting women and children.

Foreign Military Training.■ The Department o State cooperates

with the Department o Deense to incorporate combatingviolence against women into training programs aimed at

international military students and oreign militaries.

woMen anD gIrls’ IssUes

Trafcking in Women and Girls.■ The Department o State and

USAID, in collaboration with other U.S. Government agencies,

support nearly 140 global and regional anti-trafcking programs

in 70 countries.

Legal and Political Rights.■ The Department o State unds

initiatives in sub-Saharan Arica to empower women and youth.

USAID supports programs to strengthen economic legal rights or

women in Albania, Guatemala, Benin, South Arica, and Rwanda.

Women´s issues are a core actor in U.S. oreign policy. Secretary

Clinton, a long-time champion o women´s rights, has inspired women

worldwide with her declaration that “human rights are women´s

rights, and women’s rights are human rights.” Her eorts have

renewed the U.S. commitment to women as keys to progress and

prosperity around the world. For urther inormation about women’s

and girls’ issues, visit the Department o State’s Ofce o Global

Women’s Issues website at http://www.state.gov/s/gwi/index.htm

and USAID’s Ofce o Women in Development website at

http://www.usaid.gov/our_work/cross-cutting_programs/wid.

First Lady Michelle Obama and Secretary o State Hillary Rodham

Clinton at the Department o State ceremony honoring recipients

o the International Women o Courage Award, Washington DC,

March 11, 2009. AP Image

Céline Nambi works with the Association o Mothers o Students to keep

girls in school in Tabota, Benin. USAID/André Roussel Image





strategIc goal 4:

ProMotIng econoMIc growth anD ProsPerIty Strengthen world economic growth and protect the environment, while expanding opportunitiesor U.S. businesses and ensuring economic and energy security or the nation.

I. PUBLIC BENEFIT

The U.S. Government’s goal is to achieve rapid, sustained,

and broad-based economic growth or the United

States, its trading partners, and developing countries.

Further, economic diplomacy plays a large role in advancing

the Department’s priorities in the areas o U.S. energy security,

climate change, and the environment. All countries derive

enormous benets rom a stable, resilient, and growing world

economy. Te United States plays a leadership role to promote

economic growth and prosperity. Te latest global economic

downturn, however, demonstrates how quickly growth can

reverse into rapid decline and the importance o implementing

economic policies that promote sustainability.


O the 24 indicators within this Strategic Goal, seven met or

exceeded targets and six were below target. Ratings are not

available or 11 indicators that are either new or or which data

are not yet available. Te Department o State and USAIDallocated $4.7 billion toward this Strategic Goal in FY 2009,

which is 10% o the total State-USAID budget supporting

all strategic goals. A more detailed discussion o the priorities

under this Strategic Goal and U.S. Government perormance

or six illustrative indicators is provided in the ollowing

section.


Intensied U.S. dialogue with key emerging economies■

including Brazil, India, and Russia, and held three G20

Summits at the leaders level.

Launched a global initiative to ght hunger and promote■

sustainable agricultural development.

Appointed a Special Envoy or Climate Change, a Coordina-■

tor or International Energy Aairs, an Economic Envoy to

Northern Ireland, and a Special Envoy or Eurasian Energy.

A successul World Pomegranate Fair in Kabul, Aghanistan, sponsored

by USAID, enabled armers to boost production and stimulate the Aghan

economy with international exports. Here, a seller displays his produce

at the air. AFP Image

Private Markets and

CompetitivenessTrade and Investment

Financial Sector

Infrastructure

Energy Security

Agriculture

Macroeconomic Foundationfor Growth

Economic Opportunity

Environment


($ in millions)

$0

$2,500

$5,000


TOTAL – $4,728

$316$192

$1,047

$48

$1,236

$355

$286

$470

$778



Above target – 5

(21%)On target – 2

(8%)


(4%)Below target – 5

(21%)


(46%)






TRADE AND INVESTMENT: Promote increased trade and invest-

ment worldwide, on both multilateral and bilateral levels, through

market-opening international agreements and the urther integra-

tion o developing countries into the international trading system.

Analysis: Te U.S. Government promotes increased trade and

investment, a powerul engine or growth, and has negotiated a

number o bilateral ree trade agreements to open new markets

or American goods and services. In Arica, economic trade

data shows declining trends, with trade between the United

States and sub-Saharan Arica decreasing in FY 2009. Slow

growth will impact virtually all sectors o Arican economies

and threatens to erase recent gains in economic growth, living

standards, and poverty reduction.

While these ar-reaching eects will be difcult to counteract,they elevate the importance o U.S. oreign assistance and

diplomatic eorts in helping sub-Saharan countries achieve

their development goals. Sub-Saharan Arica needs increased

private sector investment, both oreign and domestic, to achieve

sustained rates o economic growth necessary to reduce poverty

on the continent. At present, the region is largely disconnected

rom the global marketplace and the benets that arise rom

trade. I Arica were to increase its share o world trade by

just one percentage point rom its current 2% to 3%, it would

generate additional export revenues o $70 billion annually,

which is nearly three times the amount o annual assistance tosub-Saharan Arica rom all donors. U.S. diplomats are working

with sub-Saharan countries on policies that promote growth in

trade and oster Arica’s integration into the global marketplace.

Perfrmance Indicatr: Level of Two-Way Trade Between the UnitedStates and Sub-Saharan Africa, Excluding U.S. Energy-related Imports

$20

$30

$40

$50

FY 2011FY 2010FY 2009FY 2008FY 2007

($ in billions)

Target Result

$26.5$33.5

$40.0$45.0


$24.3

$37.0

2009Rating

Below target

Impact(s): Reduced international trade will likely slow economic growth in sub-Saharan Arica. The decline in international trade, and economic activity in Aricaoverall, will present a strong challenge to achieving U.S. goals on the continent.

Steps to Improve: Elevate oreign assistance and diplomatic eorts to improveprivate sector investment through international agreements aimed at openingmarkets.

INFRASTRUCTURE: Promote sustainable improvements in oreign

inrastructure by encouraging public-private partnerships,

strengthening capacities or oversight and management, and

expanding markets or tradable inrastructure services.

Analysis: Te U.S. Government supports the creation, improve-

ment, and sustainability o physical inrastructure and relatedservices in both urban and rural areas, to enhance the economic

environment and improve economic productivity, including or

women. It also promotes sustainable improvements in the gov-

ernance o inrastructure by utilizing opportunities or public-

private partnerships, strengthening capacities or oversight and

management, expanding markets or tradable inrastructure

services, and promoting clean energy activities. Tis approach is

based on data that shows that countries rich in energy resources

but also have efcient markets are more likely to oster trans-

parency, strengthen the rule o law, and ensure that subsequent

benets are enjoyed widely. Dependence on natural resource wealth works to inhibit the political and economic development

o a country.

In FY 2009, the United States exceeded its target or increasing

access to modern energy services by more than 100%, due in

large part to results reported by OUs not included in the initial

program target. For example, USAID’s Ofce o Development

Partners (ODP) reported serving an additional 1.85 million

people with rural electricity cooperatives in the Philippines,

Bangladesh, Sudan, and the Dominican Republic under the

Cooperative Development Program. ODP’s results were notincluded in target planning or FY 2009, but are nonetheless a

signicant achievement. arget levels or FY 2010 and FY 2011

are reective o the varying number o countries implementing

programs in this area.

Perfrmance Indicatr: Number o People with Increased Accessto Modern Energy Services as a Result o U.S. Government Assistance

0M

2M

4M

6M

FY 2011FY 2010FY 2009FY 2008FY 2007


Target Result

1.87M0.37M

3.01M

0.18M


4.43M

1.99M

2009Rating

Above target

Impact(s): Energy powers development in all sectors — transportation,industry, crop production and agricultural processing — and increasesrevenues or small and medium-sized businesses. Energy moves water, enablescommunication and powers school computers, and health clinics. As theireconomies grow, developing countries ace increased demands or adequateenergy services. Expanding the number o people with access to modernenergy services reduces reliance on inecient and polluting uels, like wood,animal dung or crop waste.





ENERGY SECURITY: Enhance U.S. and global energy security

by promoting open and transparent, integrated, and diversifed

energy markets; encouraging appropriate energy sector investments;

and developing and sharing clean energy.

Analysis: Te Department o State is the lead U.S. Government

agency responsible or ormulating and implementing U.S.oreign policy relating to energy security, sanctions, and

commodities. Because imports supply roughly hal o U.S.

oil needs and the United States has only 2% o proven world

oil reserves, the international aspects o energy with which

the Department deals are critical to U.S. national security.

A primary ocus o the Department o State’s diplomatic eorts

in the area o energy security is promoting the development and

implementation o policies in oreign governments designed to

oster growth in the clean energy sector. Growing availability

and use o non-oil energy sources will help the United States

and other countries reduce their reliance on oil.

Perfrmance Indicatr: Percentage o World Energy Supplies rom Non-oil Sources

63%

65%

67%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

64.2%64.7%

65.6% 65.8%


65.4%

2009Rating

New indicator,no rating

Impact(s): While increases rom year to year are slight, growing availabilityand use o non-oil energy sources reduces U.S. and world reliance on

oil, acilitates a shit to clean energy sources, and strengthens emergingalternative energy markets.

AGRICULTURE: Support increased productivity and growth in

the international agriculture sector by promoting expanded

agricultural trade and market systems, broadening the

application o scientifc and technical advances – including

biotechnology – and encouraging sustainable natural resource

management.

Analysis: Increased agricultural productivity is an important

goal or nearly all the countries in which the United States

provides assistance. In FY 2009, producers beneting romU.S. assistance increased the value o international exports o

targeted agricultural commodities by an average o 70.4%,

greatly exceeding the targeted 27.23%. Te average was

impacted by results reported by Serbia (though not included

in the original target), due in part to the act that more

agribusinesses were surveyed in 2009 than in 2008. Te

impact o Serbia’s value was balanced to some degree by

negative changes in value in Uganda and imor-Leste. Te

value o imor-Leste’s export o targeted commodities declined

by 22% because its principal export commodity, Arabica

coee, undergoes a biennial uctuation in production, and

FY 2009 corresponded to a “down” year. Despite the drop

in export volume, participants in coee value chains still

beneted rom the sale o coee cherries due to prior andcontinuing contributions rom the U.S.-unded activity and

are expected to do better next season. In FY 2011, activities in

this strategic priority will be a core element o the President’s

Global Hunger and Food Security Initiative.

Perfrmance Indicatr: Percent Change in Value o InternationalExports o Targeted Agricultural Commodities Due to U.S.

Government Assistance

10%

30%

50%

70%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

41.1%

63.3%

19.09% 17.78%


70.4%

27.23%

2009Rating

Above target

Impact(s): U.S. agricultural assistance acilitates the integration o armersinto the ull chain o production, enabling producers and rural industriesto better connect with agricultural trade and market opportunities. U.S.assistance also helps to reduce trade barriers within and between countries.A positive percent change in this indicator refects progress toward the keyprogram objective o linking producers o agricultural commodities to markets.

ECONOMIC OPPORTUNITY: Support eorts to help people gain

access to fnancial services, build inclusive fnancial markets,

improve the policy environment or micro and small enterprises,

strengthen microfnance productivity, and improve economic

law and property rights.

Analysis: Economic opportunity includes eorts to help

amilies gain access to nancial services, build inclusive nancial

markets, improve the policy environment or micro and

small enterprises, strengthen micronance institution (MFI)

productivity, and improve economic law and property rights.

MFIs provide access to nancial services to those who would

otherwise not have access. Operational sustainability is an

important milestone on the road to nancial sustainability, thepoint at which the MFI becomes protable and can nance

its own growth without urther need or donor unding. Te

indicator on the ollowing page summarizes perormance among

a mix o MFIs ranging rom new to more mature institutions

as they progress toward operational sustainability (within three

to our years o initial U.S. assistance) and eventual nancial

sustainability (seven years or less).





In FY 2009, 86% o U.S.-assisted MFIs reached operational

sustainability, exceeding the perormance target. Te larger

share o operationally sustainable MFIs may have resulted

rom a tendency among USAID missions and other partner

organizations toward supporting MFIs that have made greater

progress toward nancial sustainability. Alternatively, it

may reect a general shit within the micronance industry toward greater emphasis on nancial sustainability, or some

combination o the two trends.

Perfrmance Indicatr: Percent o U.S.-Assisted MicrofnanceInstitutions that have Reached Operational Sustainability

60%

70%

80%

90%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

69%74%

70% 70%


86%

70%

2009Rating

Above target

Impact(s): U.S. assistance helps strengthen the perormance o increasinglycommercial MFIs, allowing them to attract private investors and grow asterthan i they relied solely on donor support. Operational sustainability is animportant milestone on the road to nancial sustainability, the point at whichthe MFI becomes protable and can nance its own growth without urtherneed or donor unding.

ENVIRONMENT: Promote partnerships or economic development

that reduce greenhouse gas emissions, improve air quality, and

create other co-benefts by using and developing markets to

improve energy eciency, enhance conservation and biodiversity,

and expand low-carbon energy sources. Analysis: Te United States uses the spatial indicator

tracking the number o hectares o biological signicance

and natural resources under improved management as an

appropriate measure o the scale o impact o natural resource

and biodiversity interventions. Te standard o ‘improved’

management is dened as implementation o best practices and

approaches and demonstration o progress and results rom a

potentially wide range o tailored and relevant interventions.

Ecosystems are becoming impoverished at an alarming

rate worldwide, threatening to undermine development by

reducing soil productivity, diminishing resilience to climate

change, and driving species to extinction. In FY 2009,

slightly more than 104 million hectares were under improved

natural resource or biodiversity management because o U.S.

assistance, alling short o the target o 113.2 million hectares.

argets or FY 2010 and FY 2011 have been adjusted to reect

the closure o some country programs and other changes in

programming ocus. Beginning in FY 2011, activities in this

program area will be central to the President’s Global Climate

Change Initiative.

Perfrmance Indicatr: Number o Hectares o Biological

Signifcance and Natural Resources Under Improved Management as a Result o U.S. Government Assistance

80M

100M

120M

140M

FY 2011FY 2010FY 2009FY 2008FY 2007

Hectares (in millions)

Target Result

121.6M 126M86.8M 92.7M


104.6M

113.2M

2009Rating

Below Target

Impact(s): Improved management conserves biodiversity and manages naturalresources in ways that maintain their long-term viability and preserve theirpotential to meet the needs o present and uture generations.

Steps to Improve: While the FY 2009 target was not reached by some country

programs, intermediary steps taken during the year, such as the adoption o aland use plan or Kenya’s Kitengela Conservation Area, have paved the way orimplementing improved management in FY 2010.

USAID/Tijara promotes private sector development

by supporting improved access to fnance and

business development services to micro, small, and medium

enterprises (SMEs). The program supports nine indigenous

Iraqi MFIs in addition to three international MFIs, which

together provide access to credit in all 18 Iraqi provinces.

Since 2004, USAID supported MFIs under Tijara and its

predecessor program Izdihar have distributed more than

172,690 loans worth over $397 million, and boasts a 98%

repayment rate. Tijara also helped to establish the Iraqi

Company or Bank Guarantees and the Iraqi Company or

Financing SMEs which have enabled nearly $32 million in

SME lending by Iraqi private banks to date. SMEs are Iraq’s

best source o potential or non-oil private sector growth

and employment generation outside o the public sector.

For urther inormation, visit http://www.tijara-iraq.com.

IraQ – UsaID/tIJara PrIvate sector DeveloPMent PrograM





strategIc goal 5:

ProvIDIng hUManItarIan assIstance Minimize the human costs o displacement, conficts, and natural disasters to save lives and alleviate suering.

I. PUBLIC BENEFIT

The Department o State and USAID are the lead

U.S. agencies that respond to complex humanitarian

emergencies and natural disasters overseas. Te United

States commitment to humanitarian response demonstrates

America’s compassion or victims o natural disasters, armed

conict, orced migration, persecution, human rights

violations, widespread health and ood insecurity, and other

threats. It requires urgent responses to emergencies, concerted

eorts to address hunger and protracted crises, and planning

to build the necessary capacity to prevent and mitigate the

eects o conict and disasters.

Te U.S. Government’s emergency response to population

displacement and distress caused by natural and human-made

disasters is tightly linked to all other oreign assistance goals,

including the protection o civilian populations, programs to

strengthen support or human rights, provision o health and

basic education, and support or livelihoods o beneciaries.

Te United States provides substantial resources and guidance

through international and nongovernmental organizations

or worldwide humanitarian programs, with the objective o

saving lives and minimizing suering in the midst o crises,

increasing access to protection, promoting shared responsibility,

and coordinating unding and implementation strategies. U.S.

strategic priority areas in this goal are providing protection,

assistance, and solutions; preventing and mitigating disasters;

and promoting orderly and humane means or migration

management.


O the eight indicators within this Strategic Goal, ve met or

exceeded targets and two were below target. A rating is not

available or one new indicator. Te Department o State

and USAID allocated $4.95 billion toward this Strategic Goal


supporting all strategic goals. A more detailed discussion o

the priorities under this Strategic Goal and U.S. Government

perormance or two illustrative indicators is provided in the

ollowing section.

More than 500,000 people have been displaced and over 100 killed

ater Cyclone Aila hit Bangladesh and eastern India on Monday,

May 25, 2009. CARE/Peter Caton Image

($ in millions)

$0

$2,500

$5,000


TOTAL – $4,951

$4,697

$171

$84

Protection, Assistance, and Solutions

Disaster Prevention and Mitigation

Orderly and Humane Means forMigration Management








(13%)







USAID humanitarian assistance programs responded to■

57 lie-threatening disasters in 46 countries, providing

more than $754 million to those in need.

Under the direction o the Department, the United States■

resettled more reugees than all other countries combined.Reugee admissions to the U.S. in FY 2009 totaled 74,652,

which represents 99.5% o the regional ceilings established

by Presidential Determination.


PROTECTION, ASSISTANCE, AND SOLUTIONS: Protect vulnerable

populations (e.g. reugees, internally displaced persons, and

others aected by natural disasters and human-made crises) rom

physical harm, persecution, exploitation, abuse, malnutrition,disease, and other threats by providing disaster relie, including

ood aid, and humanitarian assistance.

Analysis: By prioritizing emergency ood aid to reach those

most vulnerable, the United States is meeting its mission

o saving lives, reducing hunger, and providing a long-term

ramework through which to protect lives and livelihoods.

Te emergency ood aid indicator demonstrates the eectiveness

o USAID’s Ofce o Food or Peace (FFP) programs by

measuring the percentage o beneciaries it actually reaches

compared to planned levels. Over time, FFP has determined

that a xed annual target o reaching 93% o plannedemergency ood aid beneciaries is ambitious, but achievable

and realistic. FFP has greatly improved its ability to reach

planned ood aid beneciaries in recent years and in FY 2009

reached the targeted 93%.

Perfrmance Indicatr: Percent o Planned Emergency Food AidBenefciaries Reached by USAID’s Ofce o Food or Peace Programs

80%

90%

100%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

86%

92%

93% 93%


93%

93%

2009Rating

On target

Impact(s): By identiying the needs o populations aected by disasters andconfict, and delivering emergency ood aid to identied beneciaries, theUnited States works toward achieving a vision o a world ree o hungerand poverty, where people live in dignity, peace, and ood security. Byprioritizing emergency ood aid to reach those most vulnerable, the UnitedStates is meeting its mission o saving lives, reducing hunger, and providinga long-term ramework through which to protect lives and livelihoods.

Analysis: U.S. humanitarian assistance also provides basic

inputs or survival, recovery, and restoration o productive

capacity in communities that have been devastated by natural

and human-made disasters. USAID maintains stockpiles o

emergency relie commodities, such as plastic sheeting, blankets,

water containers, and hygiene kits, in three warehouses around

the world. o ensure that disaster-aected populations receivesufcient relie supplies, USAID’s Ofce o Foreign Disaster

Assistance (OFDA) manages the provision and delivery o

these warehoused commodities and also provides unding to

implementing partners to procure relie supplies locally.

Providing these basic inputs is the rst and most signicant step

toward restoring the social and economic capabilities o aected

areas, and tracking the percentage o households receiving this

support in a crisis is a solid indicator o OFDA’s eectiveness in

providing lasting solutions during a humanitarian crisis. Peror-

mance in FY 2009 was on target, with 85% o targeted house-holds reached. Plans to improve perormance in order to achieve

uture targets include increasing cooperation with international

humanitarian partners to obtain better access or humanitarian

assistance rom host country government authorities.

Perfrmance Indicatr: Percent o Targeted Disaster-AectedHouseholds Provided with Basic Inputs or Survival, Recovery,

or Restoration o Productive Capacity

70%

80%

90%

100%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

85% 84%

90% 90%


85%

85%

2009Rating

On target

Impact(s): By identiying the needs o populations aected by disasters andconfict, setting targets or meeting these needs, and reaching the aectedpopulations with the right activities, USAID and its partners can realize thegoal o saving lives, alleviating human suering, and reducing the social andeconomic impact o humanitarian emergencies worldwide. USAID continues toimprove its ability to identiy what kinds o needs exist and how many peopleare in need, and to step in with the right activities to reach targeted populationswith humanitarian assistance. By improving the ability o people in disaster-prone regions to anticipate natural disasters and be prepared or them, thesepopulations themselves are better able to identiy how many are in need and

what their needs are, as well as being able to bounce back ollowing a disaster.





strategIc goal 6:

ProMotIng InternatIonal UnDerstanDIng Achieve oreign policy goals and objectives and enhance national security by ostering broad, mutually-respectul engagement and mutual understanding between American citizens and institutions and their counterparts abroad.

I. PUBLIC BENEFIT

The President is committed to renewing America’s engage-

ment with the people o the world by enhancing mutual

respect and understanding and creating partnerships aimed

at solving common problems. Public diplomacy must embrace

and pursue this long-term objective even as it seeks in the short

term to engage, understand, inorm, and persuade oreign pub-

lics on issues o U.S. policies, society and values. Te Depart-

ment o State and USAID oster strategic communication

with international audiences through cultural programming,

academic grants, educational exchanges, international visitor

programs, and U.S. Government eorts to conront and counter

ideological support or terrorism. Tanks to the communication

revolution that has swept across the world, State and USAID are

expanding the scope o public diplomacy and oreign assistance

by engaging with broader and younger audiences around the

world, with particular emphasis on Muslim communities. Te

two agencies tailor messages and programs to reach new audi-

ences and better coordinate interagency activities. Embracing

new technologies, which, i used creatively and in partnership

with U.S. posts overseas, holds the promise o dramatically

scaling up many traditional public diplomacy outreach eorts.


O the seven indicators within this Strategic Goal, three met

or exceeded targets and one was below target. Ratings are

not available or three indicators that are either new or or

which data are not yet available. Te Department o State and

USAID allocated $1.2 billion toward this Strategic Goal in FY

2009, which is two percent o the total State-USAID budget

supporting all strategic goals. A more detailed discussion o the priorities under this Strategic Goal and U.S. Government

perormance or two illustrative indicators is provided in the

ollowing section.


Te Department is reaching out to oreign audiences■

worldwide through a mobile Short Message Service

(SMS) messaging system, a team o online bloggers, the

America.gov website, witter, publications, and Co.Nx,

a multimedia interactive platorm.

o support Secretary Clinton’s trip to Arica, America.gov ■

produced more than 30 articles, eight podcasts, our photo

galleries, witter eeds, and Flickr pages to ampliy the trip’s

themes. Many o these items were used by news aggregators,

Secretary o State Clinton met with Palestinian students in the West Bank

city o Ramallah in March 2009. AP Image

Offer a Positive Vision

Marginalize Extremism

Nurture Common Interestsand Values


($ in millions)

$0

$500

$1,000

$1,500


TOTAL – $1,221

$205$132

$884







(43%)





local Arican media, and blogs, helping to shape the global

conversation on democracy and good governance.

Anti-American sentiment dropped by 11% among key ■

oreign audiences exposed to Public Diplomacy eorts,

as compared to a non-Public Diplomacy control group.


OFFER A POSITIVE VISION: Oer a positive vision o hope and

opportunity, rooted in the most basic values o the American

people, by sponsoring educational programs at all levels,

advocating or the rights o people, and conducting other

public diplomacy programs.

Analysis: Te number o media interviews given by U.S.

ofcials to key Arab media outlets in the NEA region shows

an uneven trend in support o U.S. eorts to Oer a PositiveVision. Te indicator showed an increase rom FY 2007 to

2008, but registered a decline in FY 2009 to 986 interviews,

down rom 1,079 the previous year. Tis decrease reects gaps

at U.S. posts in the NEA region. Although it is sometimes

challenging to determine the specic impact o interviews

given by U.S. ofcials, any opportunity to communicate

the message o the U.S. responsibly and accurately is critical

in an environment where anti-American sentiment and

misinormation are pervasive. Tis perormance indicator

reects the State Department’s ongoing priority o person-

to-person engagement to orm lasting relationships.

Perfrmance Indicatr: Level o Outreach to Key ArabMedia Outlets, as Measured by the Number o Interviews

Given by U.S. Ofcials

800

1,000

1,200

FY 2011FY 2010FY 2009FY 2008FY 2007

Number of interviews

Target Result

9671,079

1,1301,180


986

1,080

2009Rating

Below Target

Impact(s): While the indicator did not achieve its target, it heightens the

awareness o the importance o delivering the U.S. message where anti-U.S.media is common.

Steps to Improve: Having posts ully staed, with ewer transitions during thecourse o the year will have a signicant eect on meeting perormance targets.

NURTURE COMMON INTERESTS AND VALUES: Expand

international understanding o our common interests and values

through messages and programs built on areas in which U.S.

Government expertise corresponds to the interests and needs

o our partners and counterparts.

Analysis: Te State Department and USAID work to nurture

common interests and values between Americans and people

o dierent countries, cultures, and aiths around the world.

Creating indigenous capacity – whether it is in health, education,

ree press, workorce training, agriculture, law enorcement, or

governance – is key to long-term progress, the stable develop-

ment o civil society, and rm and riendly bilateral and multi-lateral relationships. Even in autocratic societies, leaders must

increasingly respond to the opinions and passions o their people.

Public diplomacy is working to develop new ways to com-

municate and engage with oreign publics at all levels o society.

In doing so, the United States must do a better job listening,

learn how people in other countries and cultures listen to the

United States, understand their desires and aspirations, provide

them with context or U.S. decisions, and oer inormation and

services o value. Te U.S. Government sponsors educational

and inormation sharing programs at all levels to advocate peace,

liberty, and justice or all. Te Department communicatesthrough a wide range o speaker, print, and electronic outreach

programs in English, Arabic, Chinese, French, Persian, Russian,

and Spanish. Below is an indicator that tracks the percentage

o non-U.S. citizens’ understanding o the United States ater

participating in a USG-sponsored exchange.

rends in the area o Nurturing Common Interests and

Values suggest a high correlation between participation in U.S.

Government sponsored educational and cultural exchange

programs and an increase in participants’ understanding o and

avorable views toward the United States. Tis underscores the

importance o maintaining and leveraging an active alumni

network o exchange participants that have beneted rom a

positive experience with the United States.

Perfrmance Indicatr: Percentage o Participants whoIncreased or Changed Their Understanding o the United States

Immediately Following Their Program

80%

90%

100%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

93%95%

93% 93%


93%

93%

2009Rating

On target

Impact(s): As a result o participating in the Department’s Education andCultural Aairs programs, men and women rom around the world (establishedand emerging leaders, proessionals in many disciplines, scholars, students,individuals rom underserved communities) have an increased and moresophisticated understanding o American society, values and institutions. Thisstrengthens relationships between strategic communities.





strategIc goal 7:

strengthenIng consUlar anD M anageMent c aPabIlItIes

Assist American citizens to travel, conduct business and live abroad securely, and ensure a high quality workorce supported by modern, secure inrastructure and operational capabilities.

I. PUBLIC BENEFIT

The Department o State’s commitment to and role in

protecting America’s homeland, in collaboration with

the Department o Homeland Security and other

agencies, is reected in a shared vision that includes improved

technology and efciency at ports o entry and in visa

processing, more secure travel documents or the 21st century,

and smarter screening technology or Government ofcials

to use at home and abroad. In addition, the Department

has the responsibility o protecting and providing a wide

range o services or U.S. citizens while they are overseas.

Approximately ve million Americans reside abroad, and

Americans make about 40 million trips rom the United States

every year.

Te Department pursues human resource initiatives aimed

at building, deploying, and sustaining a knowledgeable,

diverse, and high-perorming workorce. Trough programs

such as training to oster oreign language prociency, public

diplomacy expertise, and improved leadership and management

skills. Te Department o State provides and maintains secure,

sae, and unctional acilities or its employees in the United

States, and overseas or both State employees and those o other

agencies. Its diplomatic security programs protect both people

and national security inormation.


O the 26 indicators within this Strategic Goal, eight met or

exceeded targets and two were below target. Ratings are not

available or 16 indicators that are either new or or which dataare not yet available. Te Department o State and USAID

allocated $10.08 billion toward this Strategic Goal in FY 2009,

which is 20% o the total State-USAID budget supporting

all strategic goals. A more detailed discussion o the priorities

under this Strategic Goal and U.S. Government perormance

or our illustrative indicators is provided in the ollowing

section.

U.S. Embassy in Berlin. Department o State Image

Visa Services

Passport Services

American Citizen Services

Human Resources

Information Technology

Security

Facilities

Planning and Accountability

Administrative Services

Rightsizing the U.S. Government Overseas Presence


($ in millions)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000


TOTAL – $10,084

$878$478$218

$678$687

$2,199

$2,996

$1,423

$520$6






Improved, but

target not met – 1(4%)



(62%)






Overseas Buildings Operations completed seven major■

capital construction projects, ten major compound security

upgrade projects, and prepared the rst Long-Range

Overseas Maintenance Plan (submitted in support o the

FY 2011 budget). Tis eort provides secure, saer, and

more unctional acilities to all employees assigned to

overseas missions.

Te Foreign Service Institute expanded distance learning■

to its global audience by 43%, reaching more Department

employees with greater resource efciency and timeliness.

Te Ofce o Children’s Issues in the Bureau o Consular■

Aairs assisted with the successul return o or access to

more than 550 children wrongully taken to or kept in

another country.


VISA SERVICES: Saeguard U.S. borders through vigilance in

adjudicating visa applications while simultaneously acilitating

legitimate travel.

Analysis: Te Department strives to promote legitimate travel

while protecting U.S. borders. U.S. visas allow oreigners

to visit the United States or a variety o reasons, including

tourism, business, or study. In the case o immigrant visas,

they are the rst step in obtaining permission to residepermanently in the United States.

Collecting the biometric data o visa applicants is a central

element in the Department’s eorts to keep America sae and

illicit travels rom entering the United States. In July 2005, the

U.S. Government announced a 10-print biometric standard

to ensure consistent screening o oreign nationals entering

the United States. Te Biometric Visa Program screens the 10

ngerprints o visa applicants against the ngerprint databases

o both the Department o Homeland Security and the Federal

Bureau o Investigation. At ports o entry, Customs and BorderProtection ofcers compare ngerprints o the arriving alien

to veriy the visa holder’s identity. Te ollowing graph shows

that 26% o all currently valid visas meet these new biometric

standards. Tis percentage will improve as older visas expire.

Perfrmance Indicatr: Percentage o All Valid Visas that Meet Current Biometric Requirements Established by the Department

20%30%40%50%60%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

N/A N/A

39%

52%


26%

2009Rating


Impact(s): Equipped with inormation urnished by the Department o Homeland Security and the Federal Bureau o Investigation, the U.S.Government is able to prevent individuals who have committed crimes inAmerica and/or obtained countereit travel documents rom receiving visas.This important capability that helps the U.S. Government protect its citizenswill improve as currently valid visas expire and are replaced with visas thatmeet the new biometric standards.

PASSPORT SERVICES: Provide American citizens with secure

passports, delivered in a timely manner.

Analysis: Te U.S. passport identies the bearer as a U.S.

citizen or national. It is a request to oreign governments to

permit travel or temporary residence in their territories and

provide access to all lawul, local aid and protection. It also

allows bearers access to U.S. consular services and assistance

while abroad and re-entry into the United States. As more

Americans travel overseas, the percentage o Americans

holding passports continues to grow.

Te Department o State issued 13.5 million passports in 2009,

a decrease o more than16% over 2008. In 2007, the U.S.

Government began requiring Americans ying to the United

States rom Canada, Mexico, and the Caribbean region to carry

a passport. Implementation o new travel rules under the West-

ern Hemisphere ravel Initiative resulted in a record volume o

passport applicants. Since 2007, the percentage o passports

issued within the targeted timerame (4-6 weeks) has increased

to 99%.

Perfrmance Indicatr: Percentage o Passport ApplicationsProcessed within Targeted Timerame

70%

80%

90%

100%

FY 2011FY 2010FY 2009FY 2008FY 2007

Percentage

Target Result

71%

100% 100% 100%


98.9%

100%

2009

Rating

Below Target

Impact(s): While the indicator did not meet its target, the near 100% resultmeans citizens seeking to travel are largely receiving passports in a timely andecient manner.

Steps to Improve: Variance rom target was slight, thereore no changes arebeing planned to this program as a result o this indicator.





SECURITY: Saeguard personnel rom physical harm and

national security inormation rom compromise.

Analysis: Te Department maintains dual eorts to saeguard

national security inormation while allowing State personnel

to be cleared in a timely manner to conduct the critical work

o the Department. Te Department orecasts the numbero cases processed will increase 30% over the next two years,

making improvements in the clearance process vital. In

FY 2009, the Department showed progress on this strategic

priority by signicantly increasing the speed o its background

investigations to an average o 55 days, rom 67 days in

FY 2008; this eort also exceed our target o 60 days or

FY 2009.

Perfrmance Indicatr: Length o Time to Complete 90%o Background Investigations, Adjudications and Granting

o Personnel Security Clearances

40

50

60

70

FY 2011FY 2010FY 2009FY 2008FY 2007

Number of days

Target Result

55

6758 58


55

60

2009Rating

Above target

Impact(s): Improvements in the clearance process have been paramount as theDepartment projects the number o cases processed will increase 30% overthe next two years. This result places the Department on track or meetingthose demands so that its workorce can conduct the critical work o theDepartment.

FACILITIES: Provide sae, secure, and unctional work acilities

or overseas and domestic personnel.

Analysis: U.S. Embassies provide are the diplomatic platorm

or all agencies o the U.S. Government with overseas missions

and ofcial duty travel visits. Te Department is responsible or

providing and maintaining secure, sae, and unctional acilities

or U.S. personnel permanently assigned to overseas posts (as

well as ofcial travel visitors including members o Congress).

In FY 2009, through capital security projects the Department

moved 1,473 U.S. Government permanently assigned

personnel to secure and saer acilities.

Perfrmance Indicatr: Total Cumulative Number oU.S. Government Personnel Moved into More Secure,

Sae, and Functional Facilities

12,000

18,000

24,000

FY 2011FY 2010FY 2009FY 2008FY 2007

Number of personnel

Target Result

14,940

18,53921,512

23,012


20,012

2009Rating


Impact(s): Since its inception in 2001, the Department’s Capital SecurityProgram continues to show positive trends and indicatates the commitmento the Department to invest in the projection o its public servants.

DIPLOMACy AND DEvELOPMENT F ACTS

On any given day, in FY 2009, approximately 22,300■

visitors received a non-immigrant visa to visit the

United States.

On any given day, in FY 2009, approximately 51,869■

Americans were issued a passport.

On any given day, in FY 2009, there were approximately■

670,000 oreign students studying at American colleges and

universities with visas issued by United States Embassies.

In FY 2009, the State Department made payments to support■

diplomatic operations worldwide in 149 dierent oreign

currencies.

In FY 2009, PEPFAR directly supported prevention o mother-■

to-child transmission programs that allowed nearly 100,000

babies o HIV-positive mothers to be born HIV-ree.

In FY 2009 in Aghanistan, more than 52,300 agricultural■

loans, ranging rom approximately $200 to $2 million, went

to small businesses with a repayment rate o 94%.

In FY 2009, USAID leveraged $36 in private fnancing■

or every $1 spent on Development Credit Authority loanguarantees.

The frst woman to win the Nobel Prize or economics,■

Elinor Ostrom, credits USAID with launching her career

in development research.

A USAID-unded scientist, Gebisa Ejeta, won the 2009■

World Food Prize or developing drought and striga

resistant sorghum.

did You Know?





PERFORMANCE INDICATORS AT-A-gLANCE

Te 32 indicators eatured in the table below serve as illustrative perormance measures reecting the Department o State and

USAID’s progress toward achieving goals set out in the Joint Strategic Plan. An interagency working group selected these indicators

rom a total o 130 state operations and oreign assistance indicators reported by the agencies or FY 2009 to represent the strategic

goals based on their budgetary signicance; policy signicance; availability o a quantitative, objective, and outcome-oriented

data set; and consistency with reporting in prior years. Additional inormation on perormance indicators, data, and analysis

may be ound in the Perormance Overview and Analysis section o the FY 2011 Congressional Budget Justication (CBJ) or

State Operations, pages 769-776; and the Annual Perormance Report included in the FY 2011 CBJ or Foreign Operations,

pages 271-347. Te documents may be respectively ound at http://www.state.gov/documents/organization/136355.pd , and

http://www.state.gov//releases/iab/y2011cbj/pd/index.htm

FY 2009 ILLuSTRATIvE INDICAToRS BY STRATEGIC GoAL AND PRIoRITY1

Strategic Pririty Indicatr2 FY 2009Rating

STRATEGIC GoAL 1: ACHIEvING PEACE AND SECuRITY

1 Counterterrorism Number o Total NEA Countries with Financial Intelligence Units that Meet the Standards o theEgmont Group Data available

mid- to late 20102 Security Cooperation and

Security Sector ReormNumber o Personnel (Foreign Military) Trained in the U.S. Who are at National Leadership Levels

Above target

3 Conict Prevention,Mitigation, and Response

Number o People Trained in Conict Mitigation/Resolution Skills with U.S. Assistance Above target


Average Rating or UN Peacekeeping Missions in Arica unded by the U.S. Below target


Average Rating or UN Peacekeeping Missions in Near East Asia unded by the U.S. Above target

6 Counternarcotics Hectares o Alternative Crops Targeted by U.S. Programs under Cultivation Above target

STRATEGIC GoAL 2: GovERNING JuSTLY AND DEMoCRATICALLY

7 Rule o Law and HumanRights

Number o U.S. Assisted Courts with Improved Management Below target

8 Rule o Law and HumanRights

Percent o Non-Democratic and Transitioning Countries with Improved Civil Liberties Ratings Data available

mid- to late 2010

9 Good Governance Percent o Non-Democratic and Transitioning Countries with Improved Governance Ratings Data available

mid- to late 2010

10 Political Competition andConsensus Building

Number o Domestic Election Observers Trained with U.S. Assistance Above target

11 Civil Society Number o U.S. Assisted Civil Society Organizations that Engage in Advocacy and Watchdog Functions Improved, buttarget not met

STRATEGIC GoAL 3: INvESTING IN PEoPLE

12 Health/HIV/AIDS Number o People Receiving HIV/AIDS Treatment

Above target

13 Health/Tuberculosis Average Tuberculosis Treatment Success Rate (TBS) in USAID Priority Countries Above target

14 Health/Malaria Number o People Protected Against Malaria with a Prevention Measure (ITN and/or IRS) in President’sMalaria Initiative (PMI) Countries

Above target

(continued on next page)1 Indicators are not listed in priority order and are numbered or reerence purposes only.2 Perormance indicators listed in this table have been abbreviated, but are ully articulated in the Strategic Goals report sections.





FY 2009 ILLuSTRATIvE INDICAToRS BY STRATEGIC GoAL AND PRIoRITY (continued)

Strategic Pririty IndicatrFY 2009Rating

STRATEGIC GoAL 3: INvESTING IN PEoPLE (continued)

15 Health/Maternal andChild Health

Percentage o Live Births Attended by Skilled Birth Attendants

Above target

16 Health/Family Planning

and Reproductive Health

Average Modern Contraceptive Prevalence Rate

Improved, buttarget not met

17 Health/Water Supply andSanitation

Number o People in Target Areas with Access to Improved Drinking Water Supply Above target

18 Education Primary Net Enrollment Rate or a Sample o Countr ies Receiving Basic Education Funds On target

STRATEGIC GoAL 4: PRoMoTING ECoNoMIC GRoWTH AND PRoSPERITY

19 Trade and Investment Level o Two-Way Trade Between the United States and Sub-Saharan Arica3

Below target

20 Inrastructure Number o People with Increased Access to Modern Energy Services as a Result o U.S. Assistance

Above target

21 Energy Security Percentage o World Energy Supplies rom Non-oil Sources New indicator,

no rating

22 Agriculture Percent Change in Value o International Exports o Targeted Agricultural Commodities Dueto U.S. Assistance

Above target

23 Economic Opportunity Percent o U.S.-Assisted Microfnance Institutions that have Reached Operational Sustainability Above target

24 Environment Number o Hectares o Biological Signifcance and Natural Resources Under ImprovedManagement as a Result o U.S. Assistance Below target

STRATEGIC GoAL 5: PRovIDING HuMANITARIAN ASSISTANCE

25 Protection, Assistanceand Solutions

Percent o Planned Emergency Food Aid Benefciaries Reached by USAID’s Ofce o Food or PeacePrograms

On target

26 Protection, Assistance

and Solutions

Percent o Targeted Disaster-Aected Households Provided with Basic Inputs or Survival, Recovery,

or Restoration o Productive Capacity

On target

STRATEGIC GoAL 6: PRoMoTING INTERNATIoNAL uNDERSTANDING

27 Oer a Positive Vision Level o Outreach to Key Arab Media Outlets, as Measured by the Number o Interviews Givenby U.S. Ofcials

Below target

28 Nurture CommonInterests and Values

Percentage o Participants who Increased or Changed Their Understanding o the United StatesImmediately Following Their Program

On target

STRATEGIC GoAL 7: STRENGTHENING CoNSuLAR AND MANAGEMENT CAPABILITIES

29 Visa Services Percentage o All Valid Visas that Meet Current Biometric Requirements Established by the Department New indicator,

no rating

30 Passport Services Percentage o Passport Applications Processed within Targeted Timerame Below target

31 Security Length o Time to Complete Personnel Security Clearances Above target

32 Facilities Total Cumulative Number o U.S. Government Personnel Moved into More Secure, Sae,and Functional Facilities

New indicator,

no rating

3 Excludes energy imports.





In an increasingly interdependent world, America needs

every element o its national power - vigorous diplomacy,

targeted development assistance, and a strong military –

to be robust and aligned in pursuit o the nation’s oreign

policy goals. As part o the President’s FY 2011 budget, the

Department o State and USAID have requested resources

to strengthen the diplomatic and development elements o

America’s national security portolio. Strengthening these

two key pillars o America’s “Smart Power” toolkit will enable

the Department and USAID to operate in partnership with

uniormed colleagues around the world to advance America’svital interests.

Te Department o State and USAID are using the resources

entrusted to them to address critical challenges and grasp

key opportunities or the United States to promote a world

that is more secure, healthier and prosperous. Foreign

policy and development proessionals – working on behal

o the American people – are pursuing priorities such as

responding to humanitarian crises, combating terrorism,

advancing democratic values, negotiating nonprolieration and

environmental treaties, acilitating ree enterprise, promotingU.S. exports, and assisting American citizens abroad.

Te annual budget request to Congress or Agency unding

is presented in two volumes: the Congressional Budget

Justication or Department o State Operations, and the

Congressional Budget Justication or Foreign Operations.

Both components o the budget and key perormance

measures link directly to the seven strategic goals in the

Department o State and USAID Joint Strategic Plan or

Fiscal Years 2007-2012. Te chart on the ollowing page

reects the combined FY 2011 State Operations and Foreign

Assistance Budget by strategic goal and includes a table listing

the actual FY 2009, estimated FY 2010 and the requested

FY 2011 resources. Following are highlights o the President’s

FY 2011 International Aairs budget request which represents

approximately 1% o the total ederal budget.

Te Department o State and USAID are committed to

being worthy stewards o the resources entrusted to them.

Te Department o State and USAID are demonstrating the

relationship between resource requests and the perormance

o the programs that these budgets support by including

perormance data in the budget submissions. In addition, the

budget promotes the efcient use o resources by eliminating

duplicative overseas services and consolidating administrative

unctions when easible.

State Department FY 2011 Budget. Te budget request orappropriations or all Department o State operations totals

$16.4 billion (not including ees) and includes resources to

support the people, platorms, and programs required by the

Department o State to carry out oreign policy, including key

components o the Department’s operations and inrastructure,

as well as U.S. engagement abroad through public diplomacy

and international organizations. Te request reects the

Department’s critical role as a national security institution

and identies resources required or diplomatic solutions to

national security issues.

Highlights o the State Operations budget include supporting

diplomatic operations in the rontline states o Pakistan,

Aghanistan, and Iraq along with the transition o Department

o Deense activities to civilian agencies in Iraq. Other key

priorities include targeted investments to expand American

diplomatic capacity by adding 599 new oreign and civil

service employees; and supporting construction o sae, secure,

and unctional overseas acilities and maintenance o existing

diplomatic acilities abroad, many o which present saety and

security challenges.

Foreign Assistance FY 2011 Budget. Te oreign assistance

appropriations request totals $36.4 billion. Tis request

reects a goal to make targeted investments in the key areas

o convergence that play a central role in the overall prosper-

ity and stability o a country and region. Te priority areas

o ood security, global health, climate change, global engage-


bUDget hIghlIghts



ment, and women’s issues are interdependent issues critical to

catalyzing a cycle o sustained capacity building, peace, and

economic growth within the nations receiving development

assistance. Te strategic direction will ocus on implementa-

tion that invests in the capacity o partner nations to build

strong, transparent, and accountable institutions. Breaking

the cycle o dependence that aid can create is a priority.

For additional inormation and details, please consult the

FY 2011 Budget o the U.S. Government at http://www.

whitehouse.gov/omb/budget , the Congressional Budget

Justications, and the Executive Budget Summary, Function

150 and Other International Programs or Fiscal Year 2011 at

http://www.state.gov/s/d/rm/c6113.htm and http://www.usaid.gov/

policy/budget.

Combined FY 2011 State Operations and Foreign Assistance Budget Resourcesby Strategic Goal $55.3 billion (includes appropriations and fees)

$12,163,131(22%)

$11,350,442(21%)

$15,681,673(28%)

$4,122,215(7%)

$6,430,179(12%)

$4,082,719(7%)

$1,463,532(3%)

Achieving Peace and Security

Governing Justly and Democratically

Investing in People

Promoting Economic Growth and Prosperity

Providing Humanitarian AssistancePromoting International Understanding

Strengthening Consular andManagement Capabilities

LEGEND

Budget by Strategic Goal ($ in thousands)

State operatins and Freign Assistance Bdget Resrces by Strategic GalFiscal Years 2009, 2010, & 20111

Strategic Gals ($ in thousands)

FY 2009 Actal FY 2010 Estimate2 FY 2011 Reest

Stateoperatins

Freign Assistance

Stateoperatins

Freign Assistance

Stateoperatins

Freign Assistance

Achieving Peace and Security $ 4,526,594 $ 9,584,611 $ 4,394,160 $ 9,047,299 $ 4,838,062 $ 10,843,611

Governing Justly and Democratically 719,124 2,702,037 720,382 2,663,132 789,254 3,332,961

Investing in People 401,008 10,286,085 430,129 10,520,330 378,160 10,972,282

Promoting Economic Growth and Prosperity 739,187 3,988,834 731,930 4,292,263 903,254 5,526,925

Providing Humanitarian Assistance 67,513 4,883,934 71,403 4,031,157 76,894 4,005,825

Promoting International Understanding 1,220,544 N/A 1,406,052 N/A 1,463,532 N/A

Strengthening Consular and Management Capabilities 8,818,165 1,265,959 9,046,438 1,735,851 10,456,095 1,707,036

Total Resources Allocated by Strategic Goal $ 16,492,135 $ 32,711,460 $ 16,800,494 $ 32,290,032 $ 18,905,251 $ 36,388,640

Oce o the Inspector General3 121,122 N/A 102,000 N/A 120,152 N/A

International Commissions 337,080 N/A 142,834 N/A 130,286 N/A

Buying Power Maintenance 5,000 N/A 8,500 N/A – N/A

Foreign Service National Separation Liabil ity Trust Fund Payment 12,294 N/A 27,946 N/A 30,770 N/A

Foreign Service Retirement & Disability Fund 157,100 N/A 158,900 N/A 158,900 N/A

Total Resources Not Allocated by Strategic Goal4 $ 632,596 N/A $ 440,180 N/A $ 440,108 N/A

Grand Total $ 17,124,731 $ 32,711,460 $ 17,240,674 $ 32,290,032 $ 19,345,359 $ 36,388,640

1 State Operations resources allocated by Strategic Goal include all appropriated and ee-based unds.

2 FY 2010 Estimate or Foreign Assistance includes two supplementals. FY 2010 Estimate or State Operations does not include these supplementals.

3 State Department Ofce o Inspector General only. USAID Inspector General budget included in Strategic Goals allocation.

4 Resources or these accounts and ofces are not allocated by Strategic Goal because they represent programs that support the Department o State as an institution

rather than diplomatic, consular and management programs linked to Strategic Goals and Priorities..

Budget HIgHlIgHts




Transparent reporting about U.S. stewardship and

management o public unds is an integral part o the

Department o State and USAID’s collaborative eorts

to improve accountability to U.S. customers, constituents and

the public. Te ollowing summarizes the Agency Financial

Reports (AFRs) or both the Department o State and USAID

or FY 2009. Te AFRs present each agency’s audited nancial

statements and ootnotes, along with perormance and other

required inormation.

Te ollowing pages include nancial inormation on eachagency’s assets, liabilities, and net position in a Balance Sheet

Summary, inormation on each agency’s cost o operations in

a Net Cost Summary, and available resources in a Budgetary

Resources Summary. In addition, summary nancial

inormation rom each agency’s FY 2009 principal nancial

statements is included. Both agencies’ AFRs are posted online.

For a complete version o the Department o State AFR, see:

http://www.state.gov/s/d/rm/rls/perrpt/2009/index.htm.

For the USAID AFR, see: http://www.usaid.gov/policy/ar09/ .

Department o State. During FY 2009, the Department

engaged a new audit rm to conduct the annual audit. Te

new Independent Auditor (IA) issued an unqualied opinion

on the Consolidated Statement o Net Cost and qualied

opinions on the Consolidated Balance Sheet and Consolidated

Statement o Changes in Net Position. Te qualied opinions

were based on the IA’s inability to satisy themselves that

property and equipment was ree o material misstatement as

o September 30, 2009. Te new IA was not able to satisy

themselves as to whether the FY 2009 Combined Statement

o Budgetary Resources was ree o material misstatement in

time to meet the deadline imposed by OMB. Tereore, the IA

issued a disclaimer o opinion on the Statement o Budgetary

Resources or the year ended September 30, 2009.

Te FY 2009 audit resulted in a restatement o the FY 2008

Balance Sheet and Statement o Changes in Net Position to

remove a $381 million environmental liability established

prior to FY 2008 by the International Boundary and Water

Commission in response to a court order. It was determined

that the amount should be reected solely in the ootnotes

versus on the principal nancial statements. Additionally, an

adjustment or land valuation established in FY 1996 reduced

property and equipment by $399 million. Te original

FY 2008 nancial statements and the restated amounts

received an unqualied opinion. Te new IA identiedthree material weaknesses and three signicant deciencies.

Te material weaknesses relate to the need or the IBWC

liability restatement, accounting or property and equipment

and timely nancial reporting. Te Department has actions

underway to resolve these weaknesses.

USAID. Te agency received an unqualied opinion or the

seventh consecutive year rom OIG. Tis afrms that USAID’s

nancial statements or the year ended September 30, 2009,

were presented airly in all material aspects and prepared in

conormance with Generally Accepted Accounting Principles

(GAAP). Te Independent Auditor’s Report can be ound at

http://www.usaid.gov/oig/public/y10rpts/0-000-10-001-c.pd .

Te auditor identied one material weakness related to

unreconciled dierences between the Agency’s Fund Balance

and its cash balance reported by the U.S. reasury, and three

signicant deciencies. Corrective action plans are in place to

resolve these ndings and related audit recommendations by

September 30, 2010.

Te ollowing summarized nancial statement inormation is

based on the same underlying data presented in the FY 2009

Agency Financial Report (AFR). Tis condensed inormation

provides a high level analysis o each agency’s nancial

perormance and should not be viewed as a substitute or

the nancial statements and notes contained in the AFR.

fInancIal HIgHlIgHts


fInancIal hIghlIghts



B ALANCE SHEET SUMMARy

Te Condensed Balance Sheets shown here present the assets,

liabilities, and net position o each agency. Each agency’s asset

and liability amounts include interagency transactions between

the Department o State, USAID, and other Federal agencies.

Department o State. Assets increased 16% over 2008,

primarily due to greater Fund Balance with reasury available

in the Global Health and Child Survival und and or Embassy

Security, Construction and Maintenance. Investments

and Property and Equipment increased as well with the

Department’s continued emphasis on construction o new

embassies and security upgrades. Liabilities increased 7%

between FY 2008 and FY 2009 due to the $1.8 billion increase

in the Foreign Service Retirement Actuarial Liability. An

experience study conducted by the Department’s actuaries

in FY 2009 indicated a need to change key assumptions

used to adjust the projected plan benets.

USAID. Assets increased by 7% in FY 2009 rom 2008.

Fund Balance with reasury (unspent appropriations)

represents 82% o these total assets. Te increase in assets

was due mainly to the Agency’s receiving more appropriation

in the Economic Support Fund. Te ve largest uses o that

und were Aghanistan, West Bank/Gaza, Jordan, Iraq, and

the Global Financial Crisis. Te Agency’s liabilities increased

three percent because o increased loan guarantees. Creditreorm related payables to the U.S. reasury account or

46% o overall liabilities.

NET COST SUMMARy

Te charts on the next page show each agency’s net cost;

that is, gross costs less earned revenue, invested in each joint

strategic goal. Tese goals, or objectives, are consistent with

the State-USAID Strategic Planning Framework. Operating

Unit Management and Executive Direction are costs that

cannot be directly traced or reasonably allocated to strategicgoals; however, these costs are captured and included in the

total net cost o operations. In addition, total net cost includes

intra-agency eliminations, but does not include eliminations

between State and USAID.

Department o State. otal Net Cost o $21.6 billion is

an increase o 22% or $3.9 billion, over 2008. Te goal o

Investing in People and Executive Direction and Other Costs

account or most o the increase. Executive Direction Costs

include the $1.5 billion increase in actuarial liability or the

Foreign Service Retirement and Disability Fund. Costs inurtherance o the Investing in People goal increased $1.8

billion due to initiatives and additional appropriations received

and expended this year by the und established in 2008 or

Global Health and Child Survival. Te goal o Achieving

Peace and Security represented the largest category o costs,

at 27%, or FY 2009.

USAID. Te Statement o Net Cost shows the amounts

spent on meeting the Agency’s six objectives. Tese objectives

are consistent with the State-USAID Strategic Planning

Framework. Te Economic Growth objective is the largestinvestment at 33%. Te spending levels increased due to

budget changes to align with the normal course o USAID’s

operations. Te 23% increase in net cost o operations is

a result o changes in the Economic Growth, Investing in

People and Humanitarian Assistance objectives. Te Economic

Growth objective shows the highest variance with an increase

in spending under Macroeconomic, Financial sector,

CoNDENSED BALANCE SHEETS As of September 30, 2009

($ in thousands) State USAID

Assets:

Fund Balance with Treasury $ 31,737,770 $ 21,437,709

Investments, Net 15,371,574 —

Property, Plant, and Equipment, Net 11,675,889 117,794

Accounts, Loans, and Interest Receivables,Net

— 3,847,554

Other Assets 1,068,073 735,379

Total Assets $59,853,306 $26,138,436

Liabilities:

Foreign Service Retirement Actuarial Liability $ 16,983,300 $ —

Liability or Capital Transers to the GeneralFund o the Treasury

— 3,945,582

Accounts Payable 2,076,189 1,836,631

Loan Guaranty Liability — 2,283,273

Liability to International Organizations 1,450,764 —

All Other Liabilities 1,970,120 603,085

Total Liabilities 22,480,373 8,668,571

Net Position:

Unexpended Appropriations 23,546,300 16,464,124

Cumulative Results o Operations 13,826,633 1,005,741

Total Net Position 37,372,933 17,469,865

Total Liabilities and Net Position $59,853,306 $26,138,436





AFR http://www.usaid.gov/policy/ar09/USAIDFY2009AFR.pd ,

page 18. Te table below documents the net cost o operations

by strategic goal.

NET CoST oF oPERATIoNS

For the Year Ended September 30, 2009 ($ in thousands)

Strategic Goal

STATE USAID

Net CostPercent of Total

Net CostNet Cost

Percent of TotalNet Cost

Achieving Peace and Security $ 5,738,945 26% $ 979,638 9%

Governing Justly and Democratically 753,657 3% 1,753,766 16%

Investing in People 5,088,936 24% 3,058,013 28%

Promoting Economic Growth and Prosperity 1,231,801 6% 3,624,505 33%

Providing Humanitarian Assistance 1,695,233 8% 1,455,654 13%

Promoting International Understanding 2,084,423 10% N/A N/A

Strengthening Consular and Management Capabilities 1,222,896 6% N/A N/A

Other Cost Category

Operating Unit Management N/A N/A 144,175 1%

Executive Direction and Other Costs Not Assigned 3,796,943 17% N/A N/A

Total Net Cost of Operations $21,612,834 100% $11,015,751 100%

$1,222,896

$5,738,945

$5,088,936

$753,657

$2,084,423

$1,695,233

$1,231,801

$3,796,943

$979,638

$3,624,505

$1,753,766

$3,058,013

$1,455,654

$144,175

Achieving Peace and Security

Governing Justly and Democratically

Investing in People

Promoting Economic Growth and Prosperity

Providing Humanitarian Assistance

Promoting International Understanding

Strengthening Consular and Management Capabilities

Operating Unit Management

Executive Direction and Other Costs Not Assigned

Inrastructure, and Agriculture program areas. Te Investing

in People variance is due to an increase in revenues or the

Health program area. Complete details are provided in the

BUDgETARy RESOURCES SUMMARy

( $

i n

t h o u s a n d s )

Total$50,138,291

Total$18,961,887

$38,166,636

$11,971,655

$11,958,038

$7,003,849

Obligations Incurred Unobligated Balance

STATE USAID

State and USAIDFY 2009 Status of Budgetary Resources

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

Te Department reported budgetary resources o $50.1 billion

as o September 30, 2009, an increase o 29% rom the prior

scal year, and USAID reported $19.0 billion in budgetary

resources, a 24% increase rom the previous scal year.

Most o the Department’s increase in resources is due to the

$9.2 billion increased budget authority rom appropriations

as well as spending authority rom osetting collections

granted by Congress and authorized by the OMB. Te chart

to the right presents the Department’s and USAID’s statuso budgetary resources on September 30, 2009.





AcknowledgmentS

The Joint Summary o Perormance and Financial Inormation

or FY 2009 was prepared by State Department’s Bureau o

Resource Management, Oce o Strategic and Perormance

Planning and USAID’s Bureau or Management, Oce o

Management Policy, Budget, and Perormance.

The Joint Summary o Perormance and Financial Inormation

or FY 2009 Core Team is composed o Claudia Magdalena

Abendroth, Sandra Byrnes, James Core, Melinda Crowley, Peter

Davis, Colleen Fisher, Chardonnay Hargrove, Sarah Kohari, Yaropolk

Kulchyckyj, Brian Levis, Subhi Mehdi, Donald Shaw, Sanjay

Srikantiah, Tara Thwing, Christian E. Torres, Erica Victoria,

Jason Wall, and Susanne Wood.

Special Acknowledgement to Rachel Arndt, Renate M. Benham,

Amanda Boachie, Renee Brock, DeAnne Bryant, Jody Buckneberg,

Stella M. Bulimo, F. Burgess, Stephanie Cabell, Jennier Ceriale,

Barbara Clark, Emily Craword, Jay Dehmlow, Albert Fairchild,

Steven W. Gibson, Alethea Gordon, Jean L. Hartung, Scott

Heckman, Michael Heiserman, John Higgins, Mehlika Hoodbhoy,

Jason Kerben, Emily Kenealy, Jonathan Parks, Douglas Rose, Noelle

L. Rush, Paul P. Schaer, Philip A. Shar, John Streuert, Charlene W.

Thomas, Elijah Wester, Gloria White, and Josh Yaphe or their

contributions to this report. Additionally, special acknowledgments

to the Department o State’s Bureau o Public Aairs and Bureau

o Administration and to USAID’s Bureau or Legislative and Public

Aairs or their assistance in posting the document to the internet.

Special thanks also go to USAID’s Bureau or Democracy, Confict,

and Humanitarian Assistance, Global Health, and Economic Growth,

Agriculture, and Trade and to the Oces o the Chie Financial

Ocer and Chie Operating Ocer.

We Oer Our Special Thanks to The DesignPond, in particularSheri Beauregard, Michael James, and Donald James or their

outstanding contributions to the design o the Report.

Image CRedits Academy for Educational Development (AED): Cover, 33

Agence France Presse (AFP): Cover, 1, 2, 20, 26, 39

Associated Press (AP): Cover, Table o Contents, 38, 45 CARE: 43 Department of State: Table o Contents, 21, 25, 47

Family Health International: Table o Contents

Florida International University (FIU): 30

Jide Adeniyi-Jones: 29

USAID: Cover, 2, 38

USIBWC: 22

World Relief Rwanda and Ikirezi: 37

CONTACT INFORMATION

We welcome your comments on this report. Please contact us by phone or e-mail as ollows.

Department o State General Inormation: 202-647-0300 or [email protected]

USAID General Inormation: 202-712-0000 or [email protected]

Electronic versions are available at:

http://www.state.gov/s/d/rm/rls/perfrpt/2009performancesummary/index.htm and

http://www.usaid.gov/policy/summary09

References

Department o State and USAID Strategic Plan or Fiscal Years 2007 to 2012

http://www.state.gov/documents/organization/86291.pdf

FY 2009 Agency Financial Reports

http://www.state.gov/documents/organization/132214.pdf

http://www.usaid.gov/policy/afr09/FY2009AFR11-16-09.pdf

FY 2011 Department o State Congressional Budget Justifcation: Volumes 1 and 2

(FY 2009 Annual Perormance Reports and FY 2011 Annual Perormance Plans or State Operations

and Foreign Assistance are included in the Congressional Budget Justifcation)

http://www.state.gov/s/d/rm/rls/statecbj/2011/pdf/index.htm

http://www.usaid.gov/policy/budget/cbj2011/

For More Information…

Regional Issues: http://www.state.gov/p/ and http://www.usaid.gov/locations/

International Organizations: http://www.state.gov/p/io/index.htm

Aghanistan & Pakistan

http://www.state.gov/p/sca/ci/af/index.htm , http://www.state.gov/p/sca/ci/pk/index.htm ,

http://www.usaid.gov/locations/asia/countries/afghanistan/ , and http://www.usaid.gov/locations/asia/countries/pakistan/

April 2



Documents

DOS and USAID Joint Review 2009 Performance and Financial